Businessuite News24
Jamaica Employers’ Federation (JEF) President David Wan, Anticipates Lowering of Interest Rate
Jamaica Employers’ Federation (JEF) President, David Wan, is anticipating that the Central Bank will commence lowering the policy interest rate on deposit-taking institutions’ overnight placements soon, based on the latest inflation rate out-turn.
The Statistical Institute of Jamaica (STATIN) reports that inflation, which peaked at 11.8 per cent in April 2022 and has been falling since, dipped to 6.2 per cent in March.
The out-turn is within touching distance of the Bank of Jamaica’s (BOJ’s) four to six per cent target range.
It also surpassed projections indicated by Governor, Richard Byles, that inflation was “on track to fall within the range of 6.75 to 7.25 per cent for the [2022/23 financial] year”.
“This outlook is consistent with global consensus forecasts for a fall in commodity and shipping prices. It also assumes that inflation expectations will continue to decline and… takes into account the Bank’s overall monetary policy stance,” Mr. Byles further stated.
That stance saw the BOJ’s Monetary Policy Committee (MPC) gradually increasing the interest rate from 0.50 per cent to seven per cent in response to rising inflation, largely consequent on the economic fallout sparked by the COVID-19 pandemic, among other factors, which was intended to reduce consumer demand for certain goods.
This was pursued along with other measures to contain Jamaican dollar liquidity expansion and maintain relative foreign exchange market stability.
The BOJ has, however, held the policy rate at seven per cent, since inflation commenced decelerating.
Mr. Wan says the JEF is “most pleased that inflation has come back down to this level, which is slightly above the upper end of what the authorities are looking for”.
“We, therefore, anticipate that the Central Bank, following the cues of the inflation rate, will [at] the next [MPC] meeting that they have… not only hold the rate [at seven per cent, but will] drop it by half a percentage point, because inflation has done what they wanted it to do,” he adds.
Mr. Wan says based on the latest 12-month out-turn, to the end of March, there is a definite “crystal clear” downward trend in inflation and predicts that “it’s going to come down more”.
He maintains that the policy interest rate reduction anticipated, once it materialises, is “going to be good for business, because the banks will follow, sooner or later, with dropping interest rates on the car loans, on maybe, the home mortgages, and the business loans”.
“The cost of doing business should, therefore, go down with this downward movement [in the interest rate],” the JEF President adds.
Mr. Wan also praises the authorities for “very cleverly” engineering foreign exchange stabilisation and appreciation, noting this, too, has served to temper inflation.
He notes that between three and six months ago, the exchange rate averaged approximately $155 to US$1.
“It’s down to $153-plus-something. So that has made imports a little cheaper, because the Dollar is now $153 not $155, and that reduction, small as it sounds, is another factor in tempering… and even causing a little downward movement in inflation,” Mr. Wan tells JIS News.
An additional factor that he says is driving down inflation is a “loosening up” of the global supply chain, which was largely crippled by the pandemic’s onset, “where you had factories shutdown in certain regions, and you had shipping services shutdown, among other things”
“I think that is well on its way back to normal, including the rise in shipping costs, which a lot of people have spoken about. The information I have… is that that cost is back down to the normal range now. So that’s very positive,” Mr. Wan says.
Senior BOJ Deputy Governor, Dr. Wayne Robinson, has indicated that consequent on the Bank’s policy actions, “along with the fact that we have been seeing a lowering of the prices of some international commodities over the past 10 months… we have been seeing a general reduction in the rate of inflation”.
“We actually responded very swiftly, early and decisively to the increase… that we’ve been seeing… which was actually spurred by rising inflation globally,” he stated during a recent Jamaica Information Service (JIS) ‘Think Tank’.
Inflation is projected to return to the four to six per cent target range during the final three months of 2023, between October and December.
“We are cautiously optimistic. Inflation is trending in the right direction. Indications suggest that it will continue to do so and that we should converge to the target by the end of the year,” Dr. Robinson said.
He pointed out, however, that “there are risks to this projection and there are things that we have to keep an eye on”.
These, the Deputy Governor informed, include global oil prices, labour market conditions, and natural disasters.
Businessuite News24
JA$2 Billion in Support to Jamaican MSMES
“Small business owners have said to me that opening a bank account for their business is difficult. They feel there’s no difference between the requirements for them as MSMEs, as opposed to a very large institution,” she noted.
The Development Bank of Jamaica (DBJ) has been allocated $2 billion in the 2025/26 Estimates of Expenditure to support funding to the micro, small and medium-sized enterprise (MSME) sector.
Minister of Finance and the Public Service, Hon. Fayval Williams, made the disclosure while delivering the opening presentation in the 2025/26 Budget Debate in the House of Representatives on Tuesday (March 11).
“It (the DBJ) will continue to pursue innovative means of mobilising funding and leveraging private-sector investment and expertise through its venture capital programme, as well as public-private partnerships and privatisation transactions,” she informed.
Mrs. Williams noted the Government’s commitment to the MSME sector, which includes an estimated 422,000 registered small businesses, generating 80 per cent of the jobs in the economy.
Approximately 1,136,240 persons are employed by MSMEs.
The Minister acknowledged that there are several issues facing the sector, including lack of equitable access to financing, high interest rates and cumbersome requirements for opening bank accounts.
“Small business owners have said to me that opening a bank account for their business is difficult. They feel there’s no difference between the requirements for them as MSMEs, as opposed to a very large institution,” she noted.
She pledged to work with Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, to reduce the requirements for the entities to open bank accounts.
The Finance Minister noted, further, that Government will be increasing the General Consumption Tax (GCT) exemption for small businesses from $10 million to $15 million.
By: Donique Weston JIS
Businessuite News24
Jamaica Open For High-Value Agricultural Investments – Minister Green
“Now is the time for high-value agricultural investment, right here in Jamaica. Things that we produce in Jamaica are sought after all over the world. As such, we do believe there are significant opportunities now in agro processing,” Mr. Green said.
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Businessuite Women
Corporate Movements: Margaret Campbell Appointed CEO of GKMS Group; Lee-Anne Bruce Named COO
GraceKennedy Limited (GK) is pleased to announce leadership changes at GraceKennedy Money Services (GKMS) as part of its ongoing succession plan and strategic talent development and deployment.
Effective April 1, 2025, Margaret Campbell will assume the role of Chief Executive Officer (CEO) of the GKMS Group. Campbell, who has worked with GKMS for over 25 years, has served as its Chief Operating Officer (COO) since 2020. She joined GKMS in 1996 and has held several leadership roles during her tenure including, Financial Controller, Chief Financial Officer (CFO), and Country Manager for GKMS Jamaica. A Fellow Certified Chartered Accountant, Campbell also holds an MBA in Finance from the University of Manchester and serves on several GK subsidiary boards. She is also the current President of the Jamaica Money Remitters Association.
Frank James, Group CEO of GraceKennedy, expressed confidence in Campbell’s leadership, stating, “Margaret has demonstrated strong leadership and an unwavering commitment to providing exceptional value and convenience to our customers across Jamaica and the wider Caribbean, in keeping with our vision of being the number one Caribbean brand in the world. I have no doubt she will continue to drive GKMS forward.”
Grace Burnett, CEO of GKFG, added, “Margaret’s industry expertise and strategic approach make her the ideal person to lead GKMS into the future. Her experience and passion for operational excellence will be instrumental as GKFG continues to grow and evolve.” The announcement of Campbell’s appointment comes as Burnett, who has led GKMS since 2019, prepares to retire from GraceKennedy later this year.
Lee-Anne Bruce
Additionally, GraceKennedy has named Lee-Anne Bruce as the new COO of the GKMS Group, also effective April 1, 2025. Bruce holds a bachelor’s degree from the Frank G. Zarb School of Business at Hofstra University and is a Certified Anti-Money Laundering Specialist. With over a decade in senior leadership roles at GK, she has served as Group Chief Compliance Officer, Chief Risk Officer, and most recently, Chief Audit Executive. She began her career at GK in 2003, when she played a key role in GKMS’ expansion into the Eastern Caribbean.
Margaret Campbell, incoming GKMS CEO, welcomed Bruce’s appointment, stating, “Lee-Anne is no stranger to GKMS and her extensive experience and understanding of our business will undoubtedly be invaluable in her new role.”
In light of the leadership changes at GKMS, Judith Chung, Group Chief Compliance Officer & Senior Legal Counsel, will act as Chief Audit Executive of GraceKennedy Limited, while Jason Bailey, Head of Risk, will temporarily assume responsibility for the Compliance portfolio.
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