Governor of the Bank of Jamaica, Richard Byles, says the country would have to face double-digit interest rates if the central bank was called on to maintain inflation below four percent.

The central bank governor addressed the recent decision to keep the BOJ’s current inflation-targeting arrangement for another three years during a media briefing last week.

Mahiri Stewart tells us more.

The Bank of Jamaica, in April,  was again mandated by the central government to maintain inflation between four and six percent. The target will be set for the next three years before it can again be reviewed.

Governor Richard Byles says this was the recommendation put forward by the BOJ.

The BOJ governor says while there’re clear advantages to having a lower inflation target, getting there under the current economic realities would be far too painful for the majority of Jamaicans.

He says this is partially driven by the lack of competition among commercial banks.

Mr. Byles says to overcome these difficulties the country’s growth rate would be significantly reduced.