PNP Opposes to BOJ Increase in Interest Rate

Opposition Spokesman on Finance, Julian Robinson has also taken issue with the decision of the Bank of Jamaica, (BOJ) to raise interest rates by one percentage point, as of October 1. Robinson insists the increase in interest rates will drive up borrowing costs for businesses and consumers, who are already struggling to survive amid the COVID-19 pandemic.

The Bank of Jamaica, (BOJ) has justified the increase in its interest rate as a means of dampening further inflation expectations and to stabilize the exchange rate. But many, including the Jamaica Manufacturers and Exporters Association, (JMEA) believe that the increase is misguided and will weaken the economy and further impoverish the most vulnerable.

The Opposition Spokesperson on Finance shares similar sentiments; Robinson says for manufacturers, specifically those who have to import materials; are facing scarcity and increase cost, initially because of the freight cost, but he added that the increase interest rates is now another factor they will have to take into consideration. Robinson also noted that these increased prices will be passed on to consumers as a result of the burden that manufactures and business persons will have to take on. He asserts that the Government needs to provide support for the most vulnerable while the economy recovers.

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