this transformation so that today we can realistically contemplate the prospect of employing modern foreign exchange market practices and full - fledged inflation targeting. bank of jamaica also enhanced its forecasting and policy analysis toolkit so that it can improve the consistency of macroeconomic projections and frame sound monetary policy on a continuous basis. in july 2017, bank of jamaica adopted the interest rate on overnight deposits as the policy rate, replacing the interest rate on 30 - day deposits. this refinement in the policy signal was intended to strengthen the transmission of monetary policy. other refinements have included providing a system of liquidity assurance to our banks and narrowing the interest rate corridor ( the difference between the overnight deposit rate and the rate on overnight advances to banks ). following these changes, the minister of finance in september 2017 approved a medium - term inflation target for bank of jamaica for the first time ( the target is 4. 0 to 6. 0 per cent ). bank of jamaica also enhanced policy transparency earlier this year by publishing, also for the first time, a fixed calendar of announcements of monetary policy decisions for the year ahead. these steps, together with the measures to promote exchange rate flexibility in a modernised foreign exchange market, set the stage for an important date later this year ( october ) when the government is expected to deliver on its commitment to table legislation in parliament to modernise jamaica's central bank. in support of the adoption of full - fledged inflation targeting, these legislative reforms will establish an independent central bank that will be accountable for maintaining price stability as its primary mandate. fiscal consolidation - from crowding out to crowding in for many years, a seemingly insatiable appetite for government borrowing diverted the flow of jamaica's financial resources from the private sector - crowding them out - and made real sector investment harder and more costly, thus impeding economic growth. after a sustained period of disciplined fiscal consolidation, a long overdue correction, i was pleased to be in a position, in february last year, to declare without fear of contradiction that jamaica's long history of government crowding out had come to an end. a drastic reduction - to the point of virtual disappearance - in domestic borrowing by government has opened the way for substantial increases in private sector credit. private sector credit grew by 19 per cent for fy2017 / 18, the highest level since the economic reforms began, and should average growth in excess of 10 per cent over the medium term. jamaica's debt to gdp ratio

the quality of their service in order to retain market share. additional measures will be implemented to improve the quality of services delivered to end users by foreign exchange dealers. this will include the adoption of an fx market code of conduct governing the behaviour of dealers in their interactions with each other and with their customers. thanks to adequate supplies from improved earnings in a sustainable current account balance, the foreign exchange market has finally evolved from a state of almost continuous movement in one direction only to a more normal two - way market where the exchange rate is just as likely to move up as it is to move down. exchange rate movements over the medium - term more reliably reflect changing economic and market conditions without hidden distortions. this new reality and the longer - term stability that it has brought puts banks and other financial institutions in a better position to offer reasonably priced hedging tools to businesses that may not have the capacity to manage the increased daily exchange rate volatility. the generally less risky environment coupled with greater transparency in the fx market has opened up opportunities for a variety of risk mitigation products to be introduced. ensuring that this happens is the focus of our current efforts. as other countries have experienced, we expect that adequate supplies of foreign exchange and a significantly reduced exchange rate impact on inflation will over time weaken the historical focus of the public on the exchange rate as a key measure of overall economic performance and the primary indicator of future inflation. the central bank's primary focus on low inflation will take centre stage as it gradually reduces its footprint in the foreign exchange market. 4 / 5 bis - central bankers'speeches this modernization of the foreign exchange market, in the context of the overall economic reform programme, is now providing the pivot towards our goal of price stability within an inflation targeting regime. conclusion ladies and gentlemen, despite being an unqualified success to date, economic reform for jamaica has not been easy and many challenges remain, including a stubbornly sluggish growth rate held back by low productivity. in addition, there are special risks associated with being a small hyper - open economy located in the middle of the hurricane belt. yet, our achievements to date give us confidence that we can plan for the future from a position of increasing strength. the simple truth, ladies and gentlemen, is that jamaica's prospects have not looked this good since the days of political independence in 1962 and this allows us to be confident in our ambition to achieve economic independence. indeed, at this point i am as confident as