News Release
7 February 2005
BANK OF JAMAICA INTEREST RATES
Interest rates applicable to all Bank of Jamaica open market instruments have been reduced
with effect from today, 7 February 2005.
The reductions range from 30 basis points on shorter term instruments to 50 basis points at
the longer end.
30 days
60 days
90 days
13.50
13.65
13.75
13.85
14.00
14.50
15.00
Previous Rate 13.80
Reduction (bp) 30
13.95
30
14.05
30
14.15
30
14.30
30
15.00
50
15.50
50
New Rate
120 days
180 days
270 days 365 days
These rate adjustments reflect the steady improvement in Jamaica’s economic environment
as reflected in buoyant foreign exchange inflows, stability in the money and foreign
exchange markets and the rebound in domestic agriculture since Hurricane Ivan.
The near term prospects for the economy continue to be very favourable despite the ongoing
concerns about energy prices and the tightening of monetary policy in the USA. The
Bank’s net international reserves currently exceed US$1.8 billion, a level that is more than
adequate to underwrite near term stability.
Equally important is the expectation of a marked slowdown in inflation during the first
quarter of 2005 and a return to single digit inflation in the forthcoming fiscal year.
Bank of Jamaica