Nov 2010 Financial News

BOJ lowers rates again

Nov 17, 2010

The Bank of Jamaica (BOJ) on Monday lowered interest rates on 30-day certificates of deposit by 50 basis points to 7.5 per cent.

The rate adjustment is the fifth reduction since February 2010, when the Government engaged in a debt swap of its domestic debt.

The BOJ said the latest adjustment reflected continued decline in inflation.

"Risks to a reversal in this trend are abating as the hurricane season draws to a close while domestic demand conditions have been weaker than earlier anticipated," said a central bank release. "Core, or underlying, inflation has also been declining steadily."

"The progress being made in implementing fiscal and financial sector reforms have led to repeated observance of performance benchmarks related to the economic programme for this year," added the statement. "These successes continue to be reflected in financial market prices generally and in money market interest rates in particular. The change in the Bank's policy rate endorses the positive outlook for continued stability and the relatively benign prospects for inflation over the forthcoming year.'


Source:
Jamaica Observer
Wednesday November 17, 2010

http://www.jamaicaobserver.com/business/BOJ-lowers-rates-again_8159622