The new business normal The impact of a policy rate increase

Why did the Bank of Jamaica (BOJ) increase its policy rate? What will the economy look like after the rate hike in this current operating environment? Will the increase present any opportunities? How can investors prepare for what is likely to come? Accurately predicting what the macroeconomic environment will look like after the interest rate hike is next to impossible, however, we can make some assumptions about what is likely to occur through a theoretical lens.

The BOJ made the decision on September 30 to increase its policy rate from 0.50 per cent to 1.50 per cent, or by 100 basis points (bps). This is the first time that the rate has increased in almost 13 years. The rate hike decision was due to the expectation that inflation is likely to breach the upper bounds of the 4 to 6 per cent targeted range in September, largely driven by the expected increases in consumer prices.

https://www.jamaicaobserver.com/sunday-finance/the-new-business-normal-the-impact-of-a-policy-rate-increase_234412?profile=1056