Lower interest rates coming?

Prime Minister Bruce Golding said the high interest rates on Bank of Jamaica (BOJ) savings instruments might be coming down.



He said the exchange rate would stabilise if the collaboration between the Central Bank Governor and major players in the foreign exchange market were sustained.



There have been growing concerns over the high interest rates on saving instruments like certificates of deposits.



The BOJ hiked the rates to entice people to invest in the instruments in order to reduce the amount of local cash available in relation to the US dollar and to reduce the demand for foreign currency.



But groups like the Jamaica Manufacturers’ Association said this is pushing companies out of business because it’s more difficult to access loans.



At the same time the value of the Jamaican dollar has dropped by nine per cent compared with the US dollar in the past few weeks.



However, Prime Minister Golding said the monetary authorities have been in talks and have agreed on certain parameters to control the dollar.



But he said other stakeholders must do their part.