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Global events threaten J'can interest rates

THE RAMIFICATIONS of globalisation can be seen clearly as it effects the Jamaican interest rate scene.

Specifically, the cost of petroleum and the expected hike in interest rates by the United States central bank (the Fed) has serious implications for the desire of the local monetary authorities to keep local interest rates trending downward. In fact, local investors are in a wait and see mode.

Director-general of the Planning Institute of Jamaica (PIOJ), Dr. Wesley Hughes, on May 17 expressed the following sentiment: "While in the short-term we project lower interest rates, this outlook is tempered by the global market. The Feds are likely to push up interest rates. This will have a ...

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