BOJ announces reduction in interest rate corridor

The Bank of  Jamaica yesterday announced that the width of  the interest rate corridor is being reduced from 300 basis points to 200 basis points.

The interest rate corridor is the difference between the Central Bank's policy rate and the standard interest rate on its overnight Standing Liquidity Facility, SLF.

This adjustment will result in a reduction in the standard interest rate on the SLF to 2.75 per cent per annum.

The SLF provides overnight liquidity to deposit-taking institutions on demand.

The Central Bank says the rates on its weekly 14?day repurchase operations and 30?day Certificate of  Deposit will continue to be determined by auction.