More decline in Jamaican interest rates

January 29, 2025 by
At the most recent Bank of Jamaica auction for Certificate of Deposits (CDS) on Wednesday, interest rates averaged 5.99 percent, following an offer of $39 billion, the average rate is fractionally lower than the Central Bank’s Overnight (ON) rate of 6 percent, a signal that the BOJ will cut it ON rate when they meet in February.

A total of 326 bids were received by the central bank amounting to $62.42 billion, with rates ranging from 7.98 percent down to 5.5 percent. The highest submitted bid had a rate of 7.90 percent, but the highest rate obtained by successful investors was 6.2 percent. Today’s rate is up from 5.94 percent at last week’s auction when only $6.5 billion was offered, with bids of just over $32 billion.

At the end of the auction the total amount of 30 days CDs that are outstanding amounts to $126.5 billion and is down from $129.5 billion last week.  

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BOJ CD rates inched higher

June 5, 2024 by

Rates on Bank of Jamaica certificate of deposits (CDs) closed higher to end at an average of 10.02 percent in Wednesday’s public auction of $37 billion.

The highest rate cleared at 10.325 percent which was only partially filled with 334 successful bids out of a total of 373 covering $444.283 billion that the central bank received for the auction.

Today’s average rate was slightly above the 9.98 percent in last week’s auction. This week’s auction will result in the total amount of 30 days CD’s that the Bank of Jamaica holds falling to $125.5 billion from $128.5 billion in the previous week.

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BOJ CD rates fall below 10%

May 30, 2024 by

The Bank of Jamaica’s latest offering of $47 billion to the public in certificates of deposit (CD), resulted in a fall in rates with an average of 9.98 percent at the auction that attracted $60.6 billion in 445 bids of which 358 were successful with the highest rate peaking at 10.35 percent.
This week’s rate is 16 percent lower than the peak on April 5, this year, with the average rate then of 11.59 percent.
The average rate of today’s auction is the lowest in months and is lower than last week’s average of 10.19 percent following an auction of $34.5 billion which cleared at an average of 10.19 percent. The total amount of 30 days CD outstanding is $128.5 billion.
Investors should pay attention to developments in this section of the financial market to get an early reading as to the trend in interest rates and not on Bank of Jamaica overnight rate.

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