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Inflation has remained fairly low despite 5.6 per cent slide - BOJ governor

Published:Wednesday | October 19, 2016 | 10:53 PM
Wynter informed Parliament’s Public Administration and Appropriations Committee that despite the depreciation, the inflation rate for September was 1.9 per cent compared to 1.8 per cent for August.

Governor of the Bank of Jamaica (BOJ), Brian Wynter, says inflation has remained fairly low despite a 5.6 per cent slide in the value of the Jamaican dollar since April.

There have been concerns about the continued slide in the value of the dollar with calls for the government to take action to slow the pace of decline.

The local currency was being sold for $128.89 to US$1 at the end of trading yesterday.

However, Wynter says while there have been instances of sharp declines in the value of the local currency in recent months the Jamaican dollar is reasonably valued.

Addressing Parliament’s Public Administration and Appropriations Committee (PAAC) this morning, the central bank governor informed that between April 1 and October 14 the Jamaican dollar depreciated by 5.6 per cent.

He said this compares to 3.9 per cent for the corresponding period of the previous fiscal year.

Wynter informed that despite the depreciation, the inflation rate for September was 1.9 per cent compared to 1.8 per cent for August.

The BOJ governor said the dollar slide appears to be related to increased investment activity and this is a good sign for the economy.

 

BOJ Governor, Brian Wynter

Wynter informed that over the last six months the BOJ sold approximately US$475 million to the foreign exchange market.

He pointed out that the most recent intervention occurred last week Thursday when US$20 million was sold to the market.