BOJ Governor Defends Interest Hike; Opposition Not Amused

The BOJ Governor, Richard Byles has defended his team’s latest decision to increase interest rates by 1 percentage point. This despite coming under fire from several private sector groups in recent times, who consider the decision misguided. While speaking on CVM Live recently, Governor Byles says the critics have exaggerated.

Urged to reverse its latest decision to hike its interest rates by 1 percentage point from point 5 to 1-point 5 percent, the Central Bank Governor says the critics have exaggerated the impact of the move. Byles noted that the lack of control when it comes to inflation is what will have a greater impact on the population, noting that there is no swifter way to poverty than inflation. He added that the BOJ is the guardian of inflation and it will not let it get out of control.

The BOJ Governor says much consideration was given to the impact the move would have on the average Jamaican hence the 1 percentage point jump. However, the Opposition Spokesperson on Finance, Julian Robinson says the higher interest rates will definitely have dire implications for many Jamaicans already struggling to survive. He noted that MSME’s and consumers will be require to pay a much higher interest rate and cost respectively.

More in this CVM Live story from Neika Lewis: