Wednesday, January 20, 2016

Co-chair of the Economic Programme Oversight Committee Richard Byles is again defending the sliding of the Jamaican dollar — stating that the tight fiscal policies put in place by the IMF, along with reduction in oil prices has resulted in a 50-year low inflation rate of 3.7 per cent at the end of calendar year 2015.

According to Byles, the decline in inflation, in addition to the five per cent currency depreciation the country experienced last year, has positively impacted the Jamaican dollar’s competitiveness to the United States dollar by 1.3 per cent in point to point currency change.

“Sounds almost first world,” he stated in relation to the country’s current inflation rate at a press briefing at Sagicor’s headquarters in New Kingston, yesterday.

“We have to say thanks to the tight fiscal policy, and very much so to oil which has played an important role in bringing inflation down. When you look at inflation for the calendar year of 3.7 per cent and devaluation of five per cent, it’s within range and you’ve heard the governor on previous occasions saying that our currency was sufficiently competitive and will not devalue anymore. I guess this is one of the factors he was referring to, why inflation was coming in much less than previously expected. That gives us a competitive gain of 1.3 per cent from the 3.7 per cent and 5 per cent.”

http://www.jamaicaobserver.com/business/Sliding-dollar–No-problem—-Byles_49175