Jamaica’s inflation rate fell to a 40-year low of 1.8-per cent at the end of the September quarter.
That’s according to the latest Quarterly Monetary Policy Report, released today Governor of the Bank of Jamaica, Brian Wynter.
The decline reflects a two percentage point decline from the 3.8 per cent rate that was reported for the July quarter.
Governor Wynter says the central bank is also encouraged by the results from the latest inflation expectations survey, which have indicated that inflation will remain in single digits.
Governor Wynter says his forecast is for inflation to be slightly higher for the rest of this fiscal year.
This, as he says the rate will likely end at 5.5 – 7.5 per cent.
Meanwhile, Governor Wynter says the Jamaican dollar is no longer overvalued and is now less susceptible to unpredictable slippage.
He says the Government has built up some USD$1-billion surplus in the Net International Reserves, NIR.
He says the BOJ is coordinating with the Ministry of Finance to ensure that orderly conditions are maintained in debt, money and the foreign exchange markets.
Governor Wynter says he’s confident that Jamaica will be reaping the benefits of the stable dollar in the months and quarters ahead.
This as he says the economy is no longer characterized by high fiscal deficits, high inflation and high interest rates.