KINGSTON, Jamaica — The Economic Programme Oversight Committee (EPOC) says it is in support of the implementation of the Jamaica’s flexible exchange rate and inflation targeting policies in the past and will continue to reiterate its support.

According to EPOC, “The Economic Reform Programme includes a commitment to a market determined and flexible exchange rate as the Government of Jamaica [GOJ] and the monetary authorities move towards full-fledged inflation targeting within the context of a resourced, modernised and autonomous central bank”.

It added that the GOJ and the Bank of Jamaica (BOJ) have taken ‘steady, cumulative steps’ over the years towards the path to a flexible exchange rate. These include: overnight policy signal rate; non-borrowed reserves; phased reduction in surrender requirements; B-FXITT auctions, BOJ intervention policy: BOJ intervention in disorderly market conditions; inflation targeting: price stability.

EPOC notes that these reforms increase transparency and accountability.

“These reforms, buttressed by legislation to modernise BOJ’s governance, strengthen its balance sheet, increase its accountability and transparency and enshrine its independence in monetary policy implementation, will enable the institution to effectively pursue its inflation mandate,” the committee said.

Furthermore, as for inflation, EPOC said “inflation targeting will yield significant benefits for businesses and consumers, including protecting the purchasing power of the consumer”.

EPOC concludes that “the preservation of the purchasing power of all Jamaicans is the practical relevance of the BOJ switching to an inflation targeting regime”.