n August 2021, the Bank of Jamaica (BOJ) announced their likely departure from the accommodative monetary policy framework of several years. This intent was consummated on September 30, 2021, when they announced a 100-basis point (one per cent) increase in the BOJ base rate from 0.5 per cent to 1.5 per cent with a concerning rise in inflation being among the reasons for their decision.
In the aftermath, economists have been split on the matter, with at least one of note, Dr Damien King, supporting the step based on expected long-term economic stability, even with potential instability in the short term.
I share the view for the following reasons:
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