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BOJ cites pandemic as policy interest rate remains unchanged at 0.50%

The Bank of Jamaica (BOJ) said that the COVID-19 pandemic was the main factor that guided its decision to hold the policy interest rate unchanged at 0.50% per annum.

The policy interest rate is offered to deposit taking institutions on overnight placements.

The historically low rate was maintained according to the central monetary authority due to the pandemic which it anticipated would supress economic activity and keep inflation within the target of 4% to 6%.

The central bank also noted that the economic outlook for Jamaica remains highly uncertain.

The policy interest rate is an interest rate that the monetary authority, in this instance the BOJ, sets in order to influence the main monetary variables in the economy e.g. consumer prices, exchange rate or credit expansion, among others.

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