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BOJ's attempt to halt dollar slide could hike interest rates says Governor

Featured Governor of the Bank of Jamaica Brian Wynter Governor of the Bank of Jamaica Brian Wynter
KINGSTON, Jamaica October 29, 2016 - Bank of Jamaica Governor Brian Wynter, says as a result of the BOJ's intervention in trying to halt the slide and stabilise the Jamaican dollar, there is a possibility that interest rates could rise in the near future.

Wynter told RJR'sd Beyond the Headlines discussion programme,  that since April of  this year the exchange rate has depreciated by 5.9 percent compared to four percent during the corresponding period last year.

The Central Bank has been intervening, and at the close of  trading yesterday the US dollar was being sold for an average $129.14.  

“…when we intervene, we put in US dollars put we are actually taking out Jamaican dollars. One of the consequences of us intervening is that Jamaican dollars get scarcer and that tends to push up interest rates…..I don’t believe that there is need for any dramatic action.”

He also sought to ease concern that the possible rise in interest rates could seriously affect the economy.

“So what we are going to see in this period, is somewhat of a tightening  - I believe this period is temporary ….." the Governor said.

  • Countries: Jamaica

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