he conventional wisdom is that for a central bank with a price stability mandate, monitoring measures of inflation expectations can provide an important gauge of how well it is meeting its goal. In this context, shaping the public’s inflation expectation through communications and policy actions is key.
For this reason, the Jamaica Chamber of Commerce (the JCC) supports an independent central bank and the overall policy of inflation targeting.
However, while understanding the central bank’s concern about rising inflation expectations – a key reason the Bank of Jamaica raised the policy rate – the JCC are not in favour of a further rise in interest rates this year.
