Governor of the Bank of Jamaica, Dr. Brian Langrin, is defending the Central Bank’s decision to increase interest rates at this time due to rising concerns over inflationary shocks, which last much longer than previously anticipated.
Dr Langrin used a quarterly media briefing on Tuesday to reassure Jamaicans that the BOJ will move swiftly to maintain price stability while balancing potential impacts on Jamaica’s hurricane recovery.
Mahiri Stewart tells us more.
The Bank of Jamaica on Monday increased its key policy interest rate by half a percentage point to six percent in a bid to rein in rising prices.
Governor Dr. Brian Langrin provided more details on the decision on Tuesday.
There’s a growing concern that these increases in interest rates could impact growth.
However, Dr. Langrin says growth remains on track, though he admits there are vulnerabilities due to drought-related shocks, tourism and mining.
He says the decision to move aggressively by 50 basis points was a calculated one based on strong data collection.
Meanwhile, Dr. Langrin further argued that controlling price stability should not be considered an impediment to growth but supplemental.
