Wed | Aug 12, 2020

BOJ policy rate unshaken by COVID

Published:Wednesday | July 1, 2020 | 12:12 AM
The entrance to the Bank of Jamaica, Nethersole Place, Kingston.
The entrance to the Bank of Jamaica, Nethersole Place, Kingston.

The economic outlook for Jamaica remains uncertain under pandemic conditions, but the Bank of Jamaica, BOJ, opted Monday to keep its policy rate unchanged at 0.5 per cent.

That’s because inflation remains within the target range of 4-6 per cent, the central bank said.

BOJ’s policy rate is equivalent to the interest rate it charges banking institutions on overnight placement of funds with the central bank.

Annual inflation up to March was tracking at 4.8 per cent, according to Statin data. BOJ also said that core inflation, which strikes out food and energy prices, “remained relatively low at 3.3 per cent”.

The BOJ has made no adjustment to its policy rate since the spread of the deadly COVID-19 coronavirus, which emerged internationally last December and was detected in Jamaica on March 10. The central bank last adjusted rates in August 2019, when it shaved 25 basis points. Its next rate decision is due on August 18.

business@gleanerjm.com