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The Bank of Jamaica (BoJ) has announced another cut in interest rates.
Effective Wednesday August 4, the interest rate on 30-day Certificates of Deposit (CDs) will be reduced by 50 basis points to 8.5%.
The Central Bank says the latest reduction comes amidst a forecast of continued low inflation.
A slower than expected expansion in money supply and bank credit during the first quarter of the fiscal year has kept core inflation stable.
The recovery in global demand has also been sluggish and contributed to relative stability in commodity prices.
The BoJ expects that inflation will end the fiscal year at the lower end of the target range of 7.5 to 9.5%.
It says the main risk to the forecast is severe weather conditions.
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