Effective tomorrow, the interest rate payable on the Bank of Jamaica's (BOJ) 30-day certificates of deposit will be reduced by 50 basis points to recent years' low of 5.75 per cent per annum.

According to the BOJ, the revision to its policy rate is in a context of generally weak economic conditions and the recent approval of revenue measures for the 2013-2014 financial year aimed at further strengthening fiscal consolidation.

"These factors will have a dampening effect on inflationary impulses," the BOJ said as it argued that its policy action is consistent with the reduction in the interest rate on government securities consequent on the National Debt Exchange which settled last Thursday.

"These actions have occurred against the background of a staff-level agreement between the Government and the International Monetary Fund on a medium-term economic programme," added the central bank.