INTEREST RATES applicable to all Bank of Jamaica open market instruments have been reduced effective yesterday.
The reductions range from 55 basis points on shorter-term instruments to 50 basis points at the longer end.
The BOJ says that the rate adjustments reflect the steady improvement in Jamaica's macroeconomic indicators, in particular:
The exchange rate has remained stable since the beginning of the year, reflecting buoyant foreign exchange inflows from tourism and remittances.
The Bank's net international reserves remain around US$1.8 billion, a level that is more than adequate to underwrite near term stability.
Inflation in the first quarter of 2005 is expected to continue on a downward trend engendering a return to single digit inflation in the forthcoming fiscal year.
| | | 30 days | | 60 days | | 9days | 120 days | 180 days | 270 days | 365 days |
| | | | | | |
| New Rate | | 12.95% | | 13.10% | | 13.20% | 13.30% | 13.45% | 14.00% | 14.50% |
| Previous Rate | | 13.50% | | 13.65% | | 13.75% | 13.85% | 14.00% | 14.50% | 15.00% |
| Change in rates (bp) | 55 | | 55 | | 55 | 55 | 55 | 50 | 50 |
