Bank of Jamaica injects another $5 billion into the banking system

The Bank of Jamaica on Monday provided another $5 billion to commercial banks, merchant banks and building societies who are experiencing cash or liquidity problems for 14 days today. 

That amount fell half-a-billion dollars short of the $5.5 billion the financial institutions were requesting.

The average interest rate climbed to 6.47% per annum on Monday, compared with 6.31% per annum last week, before the central bank raised its benchmark rate to 6% per annum from 5.5% per annum.

The highest rate was 6.6% per annum for $500 million, while the lowest bid was 6.38% per annum for $1.5 billion. 

The central bank is the lender of last resort to deposit taking institutions who are experiencing liquidity problems.