Bank of Jamaica cuts policy interest rate to 6.25% amid positive inflation outlook.

The Bank of Jamaica has announced a reduction in its policy interest rate to 6.25 per cent, effective November 22.

This decision was made during the Monetary Policy Committee meetings, held on November 19 and 20, reflecting the current economic environment and a positive outlook for inflation.

The policy interest rate determines the levels of the rest of the interest rates in the economy, since it is the price at which banks obtain money from the central bank.

These banks will then offer financial products, such as loans, to their clients at an interest rate that is normally based on the policy rate.