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IMF dissatisfied with inflation rate

The International Monetary Fund (IMF) remains dissatisfied with Jamaica's inflation rate.
 
In a release following a meeting Monday, the IMF board said further monetary easing is needed to restore inflation to the mid-point of the four to six per cent target range. 
 
It says the Bank of Jamaica's recent reduction in the reserve requirement on Jamaican dollar deposits will help, but further rate cuts are likely to be needed. 
 
The IMF adds that the BOJ should also continue to reduce its foreign exchange market footprint, including limiting its foreign exchange sales during disorderly market conditions.
 
The annual inflation rate for 2018 was 2.4 per cent.
 
However, last week, STATIN released new data showing that inflation is moving significantly for the first time in seven months, a sign the central bank could meet its inflation target by June.
 
The inflation rate for March was 0.8 per cent.
 
Monthly inflation had been tracking at or near zero per cent in the previous four months.


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