In today’s auction of certificates of deposit, Bank of Jamaica received 563 bids for $89.897 billion for the $49 billion in CDs on offer, resulting in an average yield for successful bids of 7.99 percent.
The rate is down from last week’s 8.84 percent and follows Tuesday’s announcement of a 0.25 percent cut in the Bank of Jamaica’s overnight rates and the gradual easing in CD rates since it peaked in March at nearly 12 percent and a general easing of liquidity within the financial market, with funds held by the central bank on short term CDs are now at $120 billion compared to just under $160 billion in March this year.
The reduction also comes following a drop in inflation for 2024 of less than 4 percent from January to July.
CD rates drop below 8%
August 22, 2024 by
