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Wynter not worried about planned US$600M injection into the US economy
The Governor of the Bank of Jamaica (BoJ) says he is not overly concerned about plans by the United States Federal Reserve to pump US$600 billion into the American economy.
Governor Brian Wynter says the positives for Jamaica are likely to outweigh any negatives.
Among the positives, he pointed out, was that the Federal Reserve's move could result in higher capital flows into Jamaica which will further help to boost the Net International Reserves (N.I.R.).
Already the N.I.R. is running ahead of the target set in the agreement with the International Monetary Fund.
"We are a little over $600 million more in net foreign assets than we had originally planned for. That presents an issue but it's actually the kind of problems I think we want. It gives us the buffer, it gives us ability to continue to steer interest rates lower so that the productive sector and the economy can receive these benefits and start to generate employment and business," Mr. Wynter said.
Some commentators have pointed out that the action by the Federal Reserve could drive oil prices higher.
However, Mr. Wynter said the current increases in oil prices have already been taken into consideration in inflation projections made by the BoJ.
http://rjrnewsonline.com/business/wy...ion-us-economy
The Governor of the Bank of Jamaica (BoJ) says he is not overly concerned about plans by the United States Federal Reserve to pump US$600 billion into the American economy.
Governor Brian Wynter says the positives for Jamaica are likely to outweigh any negatives.
Among the positives, he pointed out, was that the Federal Reserve's move could result in higher capital flows into Jamaica which will further help to boost the Net International Reserves (N.I.R.).
Already the N.I.R. is running ahead of the target set in the agreement with the International Monetary Fund.
"We are a little over $600 million more in net foreign assets than we had originally planned for. That presents an issue but it's actually the kind of problems I think we want. It gives us the buffer, it gives us ability to continue to steer interest rates lower so that the productive sector and the economy can receive these benefits and start to generate employment and business," Mr. Wynter said.
Some commentators have pointed out that the action by the Federal Reserve could drive oil prices higher.
However, Mr. Wynter said the current increases in oil prices have already been taken into consideration in inflation projections made by the BoJ.
http://rjrnewsonline.com/business/wy...ion-us-economy