The Bank of Jamaica has raised its policy interest rate by half a percentage point to 6 per cent as it moves to contain rising inflation.
The increase takes effect Tuesday, September 29.
The decision was taken 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 4-6 per cent target range for the three consecutive months.
The BOJ 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.
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