Bank of Jamaica
The Bank of Jamaica has raised its policy interest rate by half a percentage point to six per cent, as it moves to contain rising inflation, effective tomorrow, September 29.
The decision was reportedly made unanimously by the Bank's Monetary Policy Committee following meetings on September 24 and 25.
The BOJ says the rate increase is necessary because inflation pressures are expected to persist for longer than previously anticipated.
Inflation rose to 7.9 per cent in August, up from 7.5 per cent in July, and has now remained above the upper limit of the Bank's four to six per cent target range for three consecutive months.
The central bank says the increase was largely driven by higher agricultural prices resulting from drought conditions, as well as higher international commodity prices which pushed up petrol costs.
It says it expects headline inflation to continue rising in the near term before returning to the target range by mid-2027.
The outlook is being affected by the conflicts in the Middle East and between Russia and Ukraine, worsening agricultural conditions and increased domestic spending associated with post-Hurricane Melissa recovery, the central bank noted.
The Bank says Jamaica's international reserves remain healthy and should provide a strong buffer against the increased global uncertainty.
The next policy decision is scheduled for November 18.
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