The Bank of Jamaica (BOJ) says while the economy is doing well, it is expected to worsen, before the damage of the COVID-19 pandemic, and the brewing war between Russia and Ukraine, can subside, and return our economy to pre-covid levels.

At a digital press conference on Tuesday, the BOJ explained how it has been working to alleviate the increases in the inflation rate and its predictions for the economy in the near future. 

As the country continues to experience an increase in the cost of living, the Bank of Jamaica says the economy is not at risk of entering another recession. At the quarterly Monetary Policy Committee Press Conference, the BOJ’s Governor Richard Byles, says the Jamaican economy has been doing well; adding that the bank’s current statement is based on the forecast of further increases to inflation over the next two months, before inflation starts to decline. This forecast is however conditional on the BOJ’s assumption that tensions between Russia and Ukraine do not escalate and inflation among Jamaica’s trading partners begin to fall. 

Byles notes that the bank’s latest decision to increase policy interest rate to five per cent per annum, contributed to the maintenance of stability in the exchange rate since the start of November in 2021, and has been critical in preventing inflation climbing even further than it has. In the near future, He said inflation is expected to peak by June of this year, and predictions indicate it will recover by June 2023

The BOJ says Jamaica’s economy is projected to continue recovering from the COVID-19 pandemic, and return to pre-covid levels by early 2023. Watch the full report below:

Reporter: Jhanielle Powell

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