Jamaica News: The Bank of Jamaica (BOJ) announces its decision to hold the policy interest rate on deposit-taking institutions’ overnight placements with BOJ at 0.50 per cent per annum.
In a statement on Friday, December 18, 2020, the Central Bank has kept the policy rate at this historic low of 0.50 per cent based on its assessment that inflation will generally continue to remain within the target of 4-6 per cent over the next two years.
Notwithstanding the temporary impact on agricultural prices from the recent rains.
The decision to hold the policy interest rate at 0.50 per cent is consistent with the Bank’s position since early 2020. The accommodative monetary policy aims to support Jamaica’s economic recovery.
Additionally, the Central Bank has proactively implemented several initiatives designed to preserve financial sector stability and maintain seamless foreign exchange market activities.
The economic outlook for Jamaica remains uncertain in the context of the ongoing COVID-19 pandemic but BOJ remains cautiously optimistic as we continue to assess and monitor new developments as they emerge.
The Bank indicated that it would maintain this monetary policy stance until there are clear signs that economic activity in Jamaica is returning to pre-COVID-19 levels.