Bank of Jamaica has taken note of an article published in The Gleaner on March 1, written by Dr Samuel Braithwaite and titled ‘BOJ Monetary Policy: Is There a Byles Effect?’

In the article, several questions were posed to BOJ, and in the context of the issues raised, the central bank wishes to provide a few points of clarification on the Jamaican economy and Bank of Jamaica’s monetary policy framework.

The bank estimates that, having recovered from the effects of COVID-19, the Jamaican economy is now operating at a level of demand for the goods and services it produces, that is above the ability to be sustained by the economy over the long term.

Generally speaking, demand-pull inflation is now an