KINGSTON, Jamaica — Opposition spokesman on Finance and Planning, Julian Robinson, says the continued hiking of interest rates by the Bank of Jamaica (BoJ) is placing untold pressure on the economy amid the skyrocketing cost of living.

Robinson was responding to the central bank’s decision on Tuesday to raise interest rates again by 50 basis points.

Reiterating its position, the Opposition said raising interest rates will not have the desired impact of reducing inflation.

“The inflation being experienced in Jamaica and many parts of the world is driven primarily by international supply chain constraints. Increasing domestic interest rates will have no impact on this,” Robinson said.

He noted that the increase in interest rates will be passed on by financial institutions to their customers and this will result in further increases in loan repayment and mortgage costs.

“This will be a devastating blow for manufacturers and producers, who are already reeling from the increased costs of imported raw materials and force them to increase the prices of their goods and services to the consumer. This is all bad news for an economy that is struggling to return to pre-pandemic levels,” Robinson said.