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The Bank of Jamaica (BoJ) is one step closer to reducing interest rates to single digit.
This follows the announcement of another cut in its benchmark rates.
Effective Tuesday, the rate payable on the BoJ's 30-day open market instruments will be reduced by 50 basis points from 10.50% to 10% per annum.
The rates on longer term instruments will remain unchanged.
A statement from the Central Bank Monday night said the adjustment to the 30-day rate reflects the added boost to confidence that the International Monetary Fund (IMF) Board endorsement brings.
Half of the financial support approved by the IMF was received by the BoJ on Monday.
As a result, gross international reserves are now approximately US$2.2 billion, representing nearly 17 weeks coverage of imports of goods and services.
The Central Bank said additional foreign exchange inflows from other multilateral agencies are expected later this month.
The receipt of these inflows will improve the BoJ's power to maintain stability in the foreign exchange market and reinforce its expectation of reduced inflation in 2010.
A sustained reduction in interest rates is one of the key components of the government's medium economic plan presented to the IMF.
http://www.radiojamaica.com/content/view/24899/52/
This follows the announcement of another cut in its benchmark rates.
Effective Tuesday, the rate payable on the BoJ's 30-day open market instruments will be reduced by 50 basis points from 10.50% to 10% per annum.
The rates on longer term instruments will remain unchanged.
A statement from the Central Bank Monday night said the adjustment to the 30-day rate reflects the added boost to confidence that the International Monetary Fund (IMF) Board endorsement brings.
Half of the financial support approved by the IMF was received by the BoJ on Monday.
As a result, gross international reserves are now approximately US$2.2 billion, representing nearly 17 weeks coverage of imports of goods and services.
The Central Bank said additional foreign exchange inflows from other multilateral agencies are expected later this month.
The receipt of these inflows will improve the BoJ's power to maintain stability in the foreign exchange market and reinforce its expectation of reduced inflation in 2010.
A sustained reduction in interest rates is one of the key components of the government's medium economic plan presented to the IMF.
http://www.radiojamaica.com/content/view/24899/52/