Financial analyst claims \'public debt will rise\'

Financial Analyst Ralston Hyman said the Bank of Jamaica\'s (BOJ) move to increase the interest rates on the certificates of deposit means that the public debt will also go up.



This is because the Bank of Jamaica will have to pay more to attract investors using the certificates of deposits as a saving instrument.



As a result, there will be less money for capital expenditure like road repairs, health sector improvement and education enhancement.



According to Mr Hyman this move by the BOJ is unavoidable.



The 30-day instrument will be going up from 14.65 percent to 17 per cent.



The 60-day rate goes up from 14.85 per cent to 17.5 percent, while 4.5 percentage points have been added to the 120-day rate.



The increase pushes the 120-day rate to 20.2 percent.



Finally, the 180-day rate moves from 15.35 percent to 21.5 and the 365-day rate from 16.7 percent to 24 per cent.