Bank of Jamaica adjusts overnight rates
Bank of Jamaica has announced changes to its interest rates, as follows:
• The standard rate on the Standing Liquidity Facility, which provides overnight liquidity to deposit-taking institutions on demand, will decrease from 7.25 per cent to 7 per cent.
• The interest rate payable on overnight deposits will increase from 3 per cent to 4 per cent.
“These adjustments will result in the narrowing of the width of the Bank’s interest rate corridor from 425 basis points to 300 basis points,” said the central bank in a press release.
“Narrowing the width of the corridor is aimed at strengthening the signalling effect of the bank’s monetary policy actions,” BOJ said.
The changes take effect Thursday, March 2.
BOJ’s 30-day certificates of deposit, which it offers weekly, remains unchanged at the current signal rate of 5 per cent.