Tue | Jan 16, 2018

Bank of Jamaica reduces interest rate

Published:Sunday | April 9, 2017 | 12:00 AM

The Bank of Jamaica has cut the interest rate offered on the 30-day certificate of deposit, the policy rate, to 4.75 per cent from five per cent.

The adjustment reflects the central bank's assessment that inflation for fiscal year 2017-18 will be within target of four to six per cent.

BOJ said that assessment is reinforced by the Government's commitment to the 7.0 per cent primary surplus target and overall public-sector fiscal targets under the precautionary standby arrangement with the International Monetary Fund.

"The continued tight fiscal policy posture supports an easing in monetary conditions," the BOJ said.

"Economic activity continues to expand although at a slower pace than its potential rate of growth," it added.

The rates applicable to the Bank's overnight lending and deposit facilities that are linked to the policy rate will correspondingly fall by 25 basis points.