The Bank of Jamaica has reduced its bench mark interest rate by 25 basis points as of today.
In the first rate cut since August of last year, the reduction brings the rate on its Certificate of Deposit down to 5 per cent.
The central bank says the reduction reflects its assessment that the inflation outlook in the island will continue to be favourable and is expected to be within the lower half of the 4.5 per cent to 6.5 per cent target range for this fiscal year.
It says although growth has been weaker than expected, macro -economic indicators are showing positive trends.
Meanwhile the BOJ says its policy stance over the next four quarters will be geared toward maintaining relatively low inflation and creating the conditions for higher economic growth.
BOJ Governor Brian Wynter ,writing in the recent Quarterly Monetary Policy Report, said the economy should continue to benefit from the gains made in external competitiveness.
It however says risks are emerging based on uncertainties in the global economy in particular developments in China and the spill over to other economies.
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