• The Jamaica Mortgage Bank (JMB) is playing a major role in enabling the expansion of homeownership according to Prime Minister, the Most Hon. Andrew Holness. 
• He noted that the entity, which is earmarked for divestment, will be listed on the Jamaica Stock Exchange (JSE), so that “Jamaicans can own a piece of this asset”. With public ownership, the JMB will be able to finance more projects, which will “accelerate the housing development in the country”. 
• Delivering the keynote address at the official opening of the Genesis 28 housing development, financed by the JMB, at 28 Waterloo Road in St. Andrew on July 7, Mr. Holness said that the move will enable the bank to serve a much wider customer base. 
• The Government’s quest to deliver 70,000 affordable housing solutions in five years is still on track, and will be supported by the funds received from the JMB divestment.  
• Some of the solutions will also be financed by the National Housing Trust (NHT). NHT resources are specifically targeted at low- and affordable-income houses, which means that housing for middle income and higher would have to be financed by the private sector. 
• The JMB was established in 1971 with the objective of mobilizing resources for on-lending to private- and public-sector developers and financial institutions in support of the national settlement goal.

(Source: JIS News)

• The Government is being assured of keen interest in Jamaica by private and public sector investors in the Kingdom of Saudi Arabia (KSA).  
• Prime Minister, the Most Hon. Andrew Holness, received this assurance from the KSA’s Deputy Minister for Investors Outreach, His Excellency Badr Al Badr, during a business luncheon hosted for a 65-member delegation visiting Jamaica from the Middle Eastern state on Friday (July 8).  
• The Deputy Minister emphasized that investments are among the engines of growth in any economy that can result in asset creation, “which leads to enhanced production, employment and overall economic progress.” 
• The partnership would be beneficial as Saudi Arabia has leading companies operating successfully internationally in many areas that can work with the Jamaican government and entities to boost and diversify both economies in sectors like agriculture, traditional and renewable energy, mining, tourism, logistics, information technology, financial services, transportation, healthcare, construction, and engineering.    
• The investment dialogue is expected to continue, with the visit deemed as the start of an historic moment and an excellent opportunity that will enable both countries to build deeper investments, trade and business links.

(Source: JIS News)

• Brazilian central bank director Diogo Guillen ruled out that policymakers would give up interest rates as a policy instrument in the future, at a time when its aggressive cycle of monetary tightening is coming to an end. He stated that policymakers continue to have interest rates as a policy instrument, but will assess how to best use it in the future. 
• The statement followed a question about how the central bank would navigate an uncertain scenario without further monetary policy, following official communication that its strategy to combat inflation involves a higher terminal interest rate and keeping it at that level for longer. The central bank raised its benchmark Selic interest rate to 13.25% in June from a record low of 2% in March 2021, and has already penciled in another increase in August. 
• Without signaling precisely if this would be its final hike, policymakers also stressed the additional need to maintain rates "in significantly contractionary territory" for a longer period to bring 2023 inflation to around the 3.25% official target. Further, the strategy remains the same and the central bank has said it will "persevere" in this task until inflation expectations are "anchored." 
• Notably, while policymakers see 2023 inflation at 4%, private economists polled by a central bank's weekly survey forecast it at 5.13%. Guillen stated that the difference is due to the central bank's assumptions for oil, shocks in industrial goods, and a neutral interest rate.

(Source: Reuters & Nasdaq)

• The Inter-American Development Bank (IDB) has approved Guyana’s request to tap US$83.3Mn from the Norway fund to develop solar power projects to aid in the diversification of the country’s energy matrix. 
• The US$83.3Mn forms part of the revenues Guyana earned from Norway over the years for the preservation of its forests. According to the agreement Guyana has with the Kingdom of Norway, the money is to be overseen by the IDB to ensure they are invested in projects that propel the social and economic well-being of the Guyanese. As the custodian of those funds, Guyana was therefore obligated to get the IDB’s blessings for its plans to spend the said money. 
• The main objective of the Program is to support the diversification of Guyana’s energy matrix towards the use of climate-resilient renewable energy sources in the electricity generation matrix.

(Source: Kaieteur News)

• The euro slid to a 20-year low and came closer to parity against the dollar on July 11 on concerns that an energy crisis will tip the region into a recession, while the U.S. currency was boosted by expectations that the Federal Reserve will hike rates faster and further than peers. 
• The most proximate concern for markets is whether or not Nord Stream 1 (a major Russian gas pipeline) is going to come back online,” said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto, adding that “the markets will likely price in a recession” for the region if it doesn't. 
• The euro tumbled as low as $1.0051 against the U.S. dollar, the weakest since December 2002. The dollar index reached 108.19, the highest since October 2002. 
• “The Fed is going to raise rates more aggressively than most other developed market central banks and we don’t think other developed market central banks really have the bandwidth to keep up,” Rai said. The Fed is expected to lift rates by 75 basis points at its July 26-27 meeting. Fed funds futures traders are pricing for its benchmark rates to rise to 3.50% by March, from 1.58% now. 

(Source: Reuters)

• The quickly changing coronavirus has spawned yet another super contagious omicron mutant that’s worrying scientists as it gains ground in India and pops up in numerous other countries, including the United States. 
• Scientists say the variant – called BA.2.75 – may be able to spread rapidly and get around immunity from vaccines and previous infection. It’s unclear whether it could cause more serious disease than other omicron variants, including the globally prominent BA.5. 
• “The latest mutant has been spotted in several distant states in India, and appears to be spreading faster than other variants there,” said Lipi Thukral, a scientist at the Council of Scientific and Industrial Research Institute of Genomics and Integrative Biology in New Delhi. It’s also been detected in about 10 other countries, including Australia, Germany, the United Kingdom, and Canada. Two cases were recently identified on the West Coast of the U.S., and Helix identified a third U.S. case last week. 
• It may take several weeks to get a sense of whether the latest omicron mutant may affect the trajectory of the pandemic. Meanwhile, Dr. Gagandeep Kang, who studies viruses at India’s Christian Medical College in Vellore, said the growing concern over the variant underlines the need for more sustained efforts to track and trace viruses that combine genetic efforts with real-world information about who is getting sick and how badly. “It is important that surveillance isn’t a start-stop strategy,” she said.

(Source: AP News)

• GraceKennedy Limited (GK) has advised that the merger of two of its local manufacturing divisions, National Processors (Nalpro) & Grace Food Processors Canning (Canning) is near completion. The combined operation has been named Grace Food Processors NALCAN. 
• The strategic decision to merge the operations of Nalpro and Canning was in keeping with GraceKennedy’s objectives to increase exports from 30% to 50% of their manufactured output by 2025, and also significantly increase domestic production.  
• The merger will see the relocation of Nalpro’s operations, which was situated in Temple Hall in St Andrew, to Canning at Twickenham Close in Kingston. Nalpro manufactures drink crystals, cereals, and dry mixes for soups; while Canning produces canned vegetables, sauces, and beverages, including Grace Tomato Ketchup and Tropical Rhythms. 
• Considerable transportation savings, reduced export consolidation expenses, and improved administrative efficiencies are expected to be realized with Nalpro’s relocation to Canning, which was determined to be the best place to house the merged operations because of its proximity to the ports. 
• The merger will be beneficial as the company continues to drive growth, reduce costs and remain internationally competitive to improve future shareholder value.

(Source: JSE)

• Several private investors have submitted proposals for renewable energy projects in Jamaica for Government consideration. Among them is an integrated solar and hydro energy project, which was announced by Prime Minister, the Most Hon. Andrew Holness. 
• These investments follow the House of Representatives’ recent approval of the exemption of GCT on Lithium-Ion Batteries. Renewable energy continues to be a major talking point as an alternative source of energy in light of the high energy prices experienced as a result of geopolitical tensions. 
• These investments are expected to assist in realizing the Government’s goal of increasing the ratio of energy generated from renewable options from the national power grid to 50% by 2030. 
• This could also contribute to a 60% reduction in Jamaica’s carbon dioxide emissions, also being targeted for 2030, in keeping with the country’s Nationally Determined Contributions (NDCs) under the Paris Agreement. The NDCs embody countries’ efforts to reduce carbon dioxide emissions and adapt to the impacts of climate change.

(Source: JIS News)

• Mexico's annual inflation accelerated in June to a level not seen since early 2001, suggesting the central bank will have little choice but continue its monetary tightening to tame spiraling consumer prices. Mexican consumer prices rose 7.99% in the year through June, this is slightly above the 7.95% consensus forecast of economists polled by Reuters. 
• This was also far above the central bank's target of 3%, plus or minus a percentage point, and marked the highest level since January 2001, when Mexico's 12-month inflation stood at 8.11%. The latest inflation figures are expected to lead Banxico, as the central bank is known, to keep raising rates after a record 75-basis points hike last month, when it warned it would hike rates again and by as much to curb inflation.  
• Chief emerging markets economist at Capital Economics is projecting a 75bps hike in the policy rate in August to 8.5%, which places his policy rate forecast for 2022 at 9.5%.

(Source: Reuters)

• Sri Lanka’s Central Bank has raised its key interest rates to their highest levels in more than 20 years to try to contain inflation that has added to the country’s economic woes. The central bank raised its Standing Deposit Facility Rate by 100 basis points to 14.50%. The move is expected to help draw more funds into the banking sector. It also raised the Standing Lending Facility Rate that it charges commercial banks by 100 basis points, to 15.50%. The bank said it expects to tighten its monetary policy further to fully curb inflation, which rose to nearly 55% in June, while food inflation topped 80%. 
• Recent price hikes have been a severe blow, especially for the South Asian country’s poor and vulnerable groups as they endure their country’s worst economic crisis in memory, struggling with acute shortages of essentials such as food, fuel, and cooking gas, and medicines. 
• Two weeks ago, Prime Minister Ranil Wickremesinghe told lawmakers the economy had “collapsed.” On July 6, 2022, he announced he had called Russian leader Vladimir Putin to request credit support to help the country import fuel. 
• Fitch Solutions Country Risk & Industry Research forecast that it would push the Standing Deposit Facility Rate to 16.50% and the Standing Lending Facility Rate to 17.50% by the year’s end.

(Source: AP News)