BOJ governor throws out challenge to private sector
The Governor of the Bank of Jamaica, Brian Wynter is challenging the private sector to increase productivity in light of the current favourable economic circumstances.
During the Central Bank’s first quarterly briefing for 2015 held today, Wynter said stability in the economy has been evidenced by the inflation rate falling faster than anticipated.
He says inflation should close the fiscal year at below five per cent, after closing 2014 at an average of 6.4 per cent.
Wynter says the BOJ is expecting inflation to run between 5.5 and 7.5 per cent for the coming year.
He says monetary and fiscal policy are delivering economic stability and it is now time to build:
Wynter warns that high inflation expectations among businesses and the potential for a stronger than anticipated pass through from exchange rate depreciation could cause inflation to end up higher than the forecast range.
Meanwhile, the Central Bank Governor says the exchange rate has adjusted to make Jamaica more competitive and is now expected to move at a slower rate than in the previous two years.
He says this should soothe some of the apprehension regarding the prospect for further depreciation of the Jamaican dollar:
Wynter says the BOJ is in a position to intervene if foreign currency market conditions require it.
He notes that net international reserves were at just over US$2 billion at the end of December 2104 with gross reserves representing over 18 weeks of imports of goods and services.