UWI Lecturer and Economist, Dr. Andre Haughton is warning that the recent central bank hike in interest rates could do more harm than good given the current economic climate.
His comments follow recent Bank of Jamaica (BOJ) inflation forecasts and increasing gas prices. Dr. Haughton, a former opposition senator says concentrated effort needs to be made in policy review to stabilize the outlook of the economy. Following the Bank of Jamaica’s forecast of inflation reaching highs of 11 percent, economist Dr. Haughton in reviewing this prediction says consideration needs to be made on expansionary policy within the economy.
In an effort to combat inflation the BOJ has raised the interest rate to 4 percent. However Haughton says this is bad for growth and suggests that investments in business may aid in recovery. In the meantime he is encouraging Jamaicans to spend wisely to maximize the value of the Jamaican dollar.
