The Bank of Jamaica, BOJ, says it’s exploring further reductions in its cash reserve requirement in order to stimulate greater economic activity.

Deputy Governor of the Central Bank, John Robinson, told today’s sitting of Parliament’s Public Administration and Appropriations Committee, PAAC, there’s potential for faster growth in the Jamaican economy.

He’s also confident of Jamaica’s continued economic stability in the short to medium term.

Chevon Campbell tells us more.

Deputy Governor Robinson, told the PAAC that private sector credit in the economy is still below market standards but trending in the right direction.

In order to boost private sector financing, one of the primary tools of the Central Bank has been to adjust it’s policy rate and cash reserve requirement.

The cash reserve requirement is the minimum amount of on hand money that must be held by a commercial bank.

Deputy Governor Robinson says the bank is exploring further reductions.

However, the Central Bank Deputy Governor remains bullish on the country’s stable economic outlook.

He also addressed concerns regarding the BOJ consistently missing it’s inflation target of between four and six per cent.

Mr. Robinson argues this means there’s room for far more rapid growth in the economy.

This, he says, is the reason for the BOJ’s continued relaxation of monetary policy.