As of Monday the Bank of Jamaica (BOJ) will be lowering the interest rate payable on its 30-day Certificates of Deposit by 50 basis points to 5.75% per annum.
The central bank says the revision in its rate is in the context of generally weak economic conditions and the recent approval of revenue measures aimed at further strengthening fiscal consolidation. It is intended that these factors will have a dampening effect on inflationary impulses.
The BOJ noted that its policy action is consistent with the reduction in the interest rate on Government securities consequent on the National Debt Exchange which settled on Friday.
It said these actions have occurred against the background of an staff level agreement between the Government and the International Monetary Fund on a medium-term economic programme.
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