Bank of Jamaica to release interest rate decision
At today’s rate policy meeting, the Bank of Jamaica (BoJ) is expected to leave unchanged the country’s 0.5% benchmark interest rate.
In June, the BoJ maintained the 0.5% interest rate policy based on a view that “monetary conditions are appropriate to support inflation remaining within the target of 4% to 6% over the next two years.” With the economy projected to shrink by 5% in 2020 due to a steep decline in tourism, which accounts for over 20% of Jamaica’s economy, the BoJ will maintain low rates to encourage cheaper lending and support a quick economic recovery.
Jamaica was quick to impose lockdown restrictions in the face of the COVID-19 pandemic, forcing Jamaican policymakers to reconsider the island’s post-pandemic future. Given that its population is expected to halve by 2100, policymakers realise the nation has to act fast to create a resilient economy. Owing to the pandemic, Kingston has invested in plans to diversify industry and train labour for new types of work. With the BoJ working in tandem with Jamaican government ministries, Kingston hopes to quickly emerge from its economic hole, and in the long-term create a diversified business environment that will be ready to handle the next unforeseen calamity.
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