Latest CD rate matches BOJ’s ON rate

Last week, the Bank of Jamaica received 251 bids amounting to $49.31 billion for an offer of certificate of deposits (CDs) amounting to $45 billion resulting in 220 successful bids.              
The auction ended with an average yield of 6.75 percent, down from 6.80 percent at the previous auction held the prior week. The rate last week was similar to the overnight rate and may be an indication that BOJ will cut the overnight rate from 6.75 percent when they meet on Monday.
The total outstanding amount for the 30-day CDs on the settlement date of 27 September 2024, will be J$126 billion up from $122 billion the week before.
Rates on CDs have fallen dramatically from just under 12 percent in March this year as inflation has subsided sharply as well.