The Governor of the Bank of Jamaica, Richard Byles, says inflation remains too volatile for the country to consider lowering interest rates.

The rate charged by the Central Bank currently stands at 7%, coming from a historic low of 5%.

Raising interest rates is the BOJ’s most effective tool for combating high inflation, which is a marker of the increased price of consumer goods.

The Central Bank is tasked with keeping inflation between 4-6%, a target that had not been breached until April.

However, high interest rates discourage spending and, in turn, affect economic growth while encouraging consumers to ration and save.

Governor Byles says as things improve, the bank is likely to reduce the rate incrementally.

Richard Byles, Governor of the Bank of Jamaica.

He was speaking at a Media Briefing on Monday.