The Jamaican economy is demonstrating unprecedented resilience to inflationary shocks.
That’s the word from Central Bank Governor, Brian Wynter.
Governor Wynter gave the assessment of the country’s inflation performance while speaking at the Bank of Jamaica’s Quarterly Monetary Media briefing in downtown Kingston this morning.
Governor Wynter says the ongoing economic reform programme has made the Jamaican economy more resilient to inflationary shocks.
He says despite significant economic shocks over the past two years, inflation remains in single digit territory, and has trended down between September last year and June this year.
Among the major inflationary shocks to the economy have been the 13-point-3 percent and 10-point-8 percent depreciation in the exchange rate over the last two fiscal years.
In addition, there was a 25 percent increase in bus and taxi fares in September 2013.
Governor Wynter pointed to two factors accounting for the improved resilience.
He says maintaining the current stance of fiscal discipline will continue to temper the emergence of excess domestic demand, and thereby strengthen the economy’s resilience.
Governor Wynter also pointed to the public’s expectation as a critical factor for managing inflation – insisting that transparency is important to the success of monetary policy.
And the BOJ Governor says there will likely be an up-tick in inflation in the September quarter owing to the severe drought conditions.