Bank of Jamaica Governor, Richard Byles, says the institution has been facing several challenges in implementing its monetary policy.

Speaking at an Inter-American Development Bank, IDB, seminar, this morning, Governor Byles said banks have not raised interest rates enough for the monetary policy to be as effective as it should be.

He said a lack of competition among banks adds to difficulty in the implementation of the monetary policy.

Meantime, Mr. Byles has indicated that the central bank tries to have a 2 percent difference from the US Federal Reserve, in a bid to maintain financial stability.

He was responding to questions at the Inter American Development Bank‘s conversations with central bank governors, on Thursday.

He added that the central bank also closely monitors the financial sector.