JMEA presses BOJ on rates to help members recover from hurricane damage
JAMAICA Manufacturers and Exporters Association (JMEA) is urging Bank of Jamaica (BOJ) to “avoid further tightening” of its key policy rate so as to help its members finance recovery from Hurricane Beryl.
“In particular, we urge the Bank of Jamaica (BOJ) to carefully consider the economic impact of the hurricane and the subsequent rise in inflation. It is crucial, at this juncture, to avoid further tightening the policy interest rate. Both commercial and retail interest rates need to be conducive to recovery efforts. Increased borrowing costs could stifle the ability of businesses and individuals to rebuild, potentially prolonging the economic recovery process,” JMEA said in a release.
It added that “considering these factors, we ask the BOJ to prioritise policies that support recovery and economic stability. By doing so we can ensure a swifter and more robust recovery for all Jamaicans”.
The urging comes as JMEA said its checks show Hurricane Beryl devastated its members, particularly those with operations in the agriculture sector.
“Our agricultural members, primarily located on the south-western side of the island — Westmoreland, St Elizabeth, Manchester, and Clarendon — have borne the brunt of this disaster. Early reports indicate that the situation is dire, and recovery will be challenging,” Kamesha Blake, executive director of JMEA, said in the release.
She said reports also indicate that factories in the affected areas have sustained damage. Monymusk Rums has reported damage to its Clarendon location, and J Wray & Nephew Limited have encountered issues at their Clarendon and St Elizabeth locations.
“The disaster has affected some of our members, both locally and internationally. For instance, Rainforest has reported severe impacts across all five countries where they operate, including imminent threats to locations like Belize, during our conversation on Thursday.”
It was also reported that damage to pepper and scallion crops could lead to short-term scarcity.
“Prior to the hurricane, Scotch bonnet pepper prices were already consistently high, posing challenges for the spices and condiments industry. The hurricane’s impact is expected to exacerbate these challenges, potentially leading to even higher prices and exerting significant pressure on businesses in this sector,” Sean Garbutt, group marketing director of Walkerswood Caribbean Foods, said.
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