THE BANK of Jamaica (BoJ) slashed interest rates again, a move, which industry experts believe, contributed to the Jamaica Stock Exchange's (JSE) main index moving up by 0.31 per cent. In a statement released yesterday, the BoJ announced that rates on all open market instruments have been reduced. The current spectrum of rates are in the 14.85 per cent to 20 per cent range.
NINTH RATE REDUCTION
This is the ninth rate reduction since interest rates skyrocketed to 33 per cent in the first quarter of 2003. The central bank said, "this latest reduction comes after our favourable outlook for emerging market debt and also after the Government successfully launched and priced a five-year 200 million Eurobond in the international capital markets."
On the heels of the announcement of reduction in interest rates, the BoJ also informed investors that their 22.125 per cent fixed rate Investment Debenture which was scheduled to remain open until January 28, would close on Monday, January 26 at 1:30 p.m. The central bank stated, "due to changed market conditions and prudent debt management, subscriptions for the Government of Jamaica Investment Debenture Series Ae will close."
