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BOJ increases interest rate again

The Bank of Jamaica (BOJ) has again increased it policy interest rate, a move to make borrowing more expensive and push consumers to spend less.
 
The central bank's policy interest rate now stands at 6.5 per cent, a 50 basis points increase over last month.
  
Thursday's rate hike makes one full year of increases, as the BOJ, like most central banks around the world, tries to fight inflation.
 
The cost of goods and services over the last year has exceeded the BOJ's four to six per cent target range, pushed by global shipping constraints and later the Russia/Ukraine crisis.
 
The central bank has been pushing up the rate in a bid to stem inflation, which has remained at 10.2 per cent for the 12 months leading to July and August this year.
 
The new interest rate takes effect on Friday, and comes a week after the US Federal Reserve pushed up its lending rate.
 
The private sector has on a number of occasions, including early this week, called for the BOJ to halt its rate increases, as businesses are being affected by the increased borrowing rates from some financial institutions.
 


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