THE BANK of Jamaica (BoJ) yesterday took the decision to again lower interest rates. This latest reduction is again applicable to its longer term reverse repurchase instruments, this time more precisely those with maturities of 90 days, 120 days, 180 days, 270 days and 365 days.
Rates with a 90 day tenor have been reduced from 20 per cent to 18 per cent while the 120 day instrument has come down from 24 per cent to 22 per cent. The 180 day instrument has been lowered from 26.5 per cent to 25 and at the same time the 270s have fallen from 27.5 per cent to 25.75. The 365 tenor which previously attracted an interest rate of 28 per cent now stands at 26 per cent.
The reductions in interest rates are consistent with the continuing improvement in both the tourism and bauxite industry. Alumina and bauxite production increased by 9.8 per cent and five per cent during the first half of 2003. Total tourist arrivals increased by 11.4 per cent over the first half of 2003, while visitor expenditures increased by 9.2 per cent to US$633.6 million.
This is the fourth time interest rates have been lowered in the last two months.
