BOJ Reports Tightening Of Credit Conditions

  • The Bank of Jamaica has reported that overall credit conditions tightened during the March 2023 quarter relative to the previous quarter.
  • Responses to the central bank's Quarterly Credit Conditions Survey showed consumers were experiencing higher interest rates and more stringent credit terms. This indicates the pass-through effect of early tightening regimes by the BOJ.
  • The Bank's data also showed that the flow of new loans to the private sector declined by 12.7% in real terms as at April 2023.
  • The BOJ expects this reality to further push down inflation in the coming months.
  • The central bank says credit terms are expected to again tighten for the June 2023 and September 2023 quarters given responses from the survey. However, a marginal deceleration in the pace of tightening is expected towards the end of the year.

(Sources: RJR News and BOJ)