BOJ Blames Uncertainty in US Foreign Policy For Halting Interest Rate Reductions

The Bank of Jamaica is blaming uncertainty in US foreign policy for its decision to halt further interest rate adjustments.

Central Bank Governor, Richard Byles, provided an update on the country’s monetary policy during a quarterly media briefing on Monday.

Governor Byles says the Bank has adopted a wait-and-see approach in order to assess the rapidly evolving positions of the current US administration.

Too volatile to predict!

BOJ Governor, Richard Byles, says while the country’s economic data remain favourable, global volatility has left accurate projections difficult.

While dismissing recession fears and adopting a bullish stance on Jamaica’s growth potential, the Planning Institute of Jamaica has also warned of US foreign policy instability.

The BOJ has gone further, halting its favourable interest rate policy reductions. This has left rates unchanged at six percent for the first time in four months.

It’s a difficult stance for the private sector, which has decried the high interest rates and their impact on growth.

However, Deputy Governor, Wayne Robinson says most central banks worldwide have adopted a cautious position.

Governor Byles says Jamaica will fully recover from the recent weather-related shocks in the coming months.

The BOJ is anticipating growth in the economy over the next fiscal year within the range of one to three percent.

However, Deputy Governor Robinson, says Jamaica’s ultimate guard against foreign policy instability is the healthy and growing size of the country’s International Reserves.

As of December, the country’s gross international reserves stand at five-point-six-billion US dollars.