Bank of Jamaica Holds Policy Rate Steady

• On February 19, 2020, the Bank of Jamaica (BOJ) made a decision to hold its policy interest rate (the rate offered on overnight balances at BOJ) unchanged at 0.50%.
• This decision was based on BOJ’s assessment that current monetary conditions are generally sufficient to support the achievement of its medium-term inflation target of 4.0% to 6.0% over the next 4 to 8 quarters.
• Given the rapid growth in loans provided to the private sector, as well as alternative sources of financing such as corporate bonds and equities, the Bank will continue to closely monitor the impact of previously implemented monetary expansion measures on credit growth, capital market transactions, and consequently, on inflation and economic activity.

(Source: BOJ)