Effective today, the Bank of Jamaica(BOJ) announces the interest rate will be increased to 2 per cent per annum from 1.50 per cent per annum.
The BOJ says the policy rate offered to overnight balances on the current accounts of deposit-taking institutions will be identical to the new interest rate.
This decision was taken by the BOJ as they want to meet their annual inflation target of 4 to 6 per cent, which will affect the prices of consumer goods and services.
Inflation will continue to breach the upper limit of the Bank’s target range over the next 10 to 12 months at higher rates than were envisaged in the previous forecast and is projected to peak in the range of 8 to 9 per cent over this period.
Written by
Matthew Davis