Bank of Jamaica Governor Brian Langrin presented the Monetary Policy Committee’s Aug. 17 decision to maintain the policy rate at 5.50% per year. The committee assessed that the recent rise in inflation was driven mainly by temporary external and administrative factors and expects headline inflation, which increased to 7.5% in July from 6.7% in June, to gradually return toward the 4% to 6% target range over the near term. Inflation is expected to remain above target during the September quarter before easing as agricultural inflation and energy- and transport-related pressures decline. The central bank will monitor incoming data and inflation expectations and is prepared to adjust its stance if upside risks become more persistent. It projects real GDP growth of 1% to 3% for the 2026-27 financial year, while gross international reserves stood at USD 6.7 billion, equivalent to 144.3% of the reserve adequacy measure.
2026-08-21Bank of Jamaica
Bank of Jamaica holds policy rate at 5.50% as inflation pressures are judged temporary
The Bank of Jamaica held its policy rate at 5.50%, judging the rise in inflation to 7.5% in July as largely temporary. Inflation is expected to remain above the 4% to 6% target during the September quarter before moderating, although the central bank is prepared to act if price pressures persist.