Economist, Keenan Falconer, says the decision by the Bank of Jamaica, BOJ, to raise its key policy interest rate is a reflection of the impact of rising inflation on local and international markets.
He was speaking on Nationwide at Five on Monday.
The BOJ raised the policy interest rate by half a percentage point to six per cent, in a bid to rein in rising prices. The increase takes effect on Tuesday.
It follows inflation hitting 7.9 per cent in August, up from 7.5 per cent in July. It’s now the third straight month above the central bank’s target range.
The BOJ has blamed the rising costs on drought and El Niño conditions, along with higher fuel costs linked to the conflicts in the Middle East and between Russia and Ukraine.
But, financial analyst, David Wan, is raising concerns about the timing.
David Wan, financial analyst. He was also speaking on Nationwide at Five on Monday.
