Noted Economist, Dr. Damien King is backing the Bank of Jamaica in its continued use of monetary policy to fight inflation despite recession fears.
While accepting that concerns of a recession either globally or locally are not unfounded, he says the central bank should be trusted to chart the best way forward.
Dr. King was speaking on Nationwide News@5 yesterday following uneasiness in the private sector that the bank’s hiking of interest rates could have a negative impact on Jamaica’s economic recovery.
This is contrasted with the BOJ who believe their actions are unlikely to impact growth or trigger a recession in the near future.
Dr. King believes business operators do not appreciate the full macro economic picture.
Meanwhile, Dr. King argues that not only is the central bank doing the right thing, he says it’s doing exactly what has been set as its mandate almost two years ago upon being granted independence.
Dr. Damien King, Executive Director, Caribbean Policy Research Institute and Economist.