The Bank of Jamaica’s Monetary Policy Committee maintained the policy rate at 5.50% as it judged the current stance appropriate to contain second-round price pressures from recent increases in international commodity prices, even though inflation has stayed within the 4.0% to 6.0% target range over the past three months and the outlook remains uncertain. The central bank will also continue measures to preserve relative stability in the foreign exchange market. Headline inflation rose to 5.5% in May 2026, above the Bank of Jamaica’s most recent projection and marking a fourth straight monthly increase since the start of 2026, while inflation is projected to keep rising and temporarily breach the top of the target band in the near term; gross domestic product growth is still expected within 1.0% to 3.0% in fiscal year 2026/27 despite downside risks, and businesses’ 12-month-ahead inflation expectations were stable at 7.0% in May. International reserves were described as healthy, with the foreign exchange rate stable and showing marginal appreciation for the calendar year to 26 June 2026. The Committee said geopolitical tensions in the Middle East, still-elevated and volatile commodity prices, and tighter United States financial conditions continue to cloud the outlook, and it reiterated that it will closely monitor incoming data and is prepared to adjust its monetary policy stance if upside inflation risks materialise.
Bank of Jamaica2026-06-29
Bank of Jamaica Holds Policy Rate at 5.50%
The Bank of Jamaica kept its policy rate at 5.50% and said it will continue measures to preserve relative stability in the foreign exchange market, judging the current stance appropriate to contain second-round price pressures from higher international commodity prices amid an uncertain outlook. Headline inflation rose to 5.5% in May 2026 and is projected to increase further and temporarily exceed the 4.0% to 6.0% target range, while the Committee said it stands ready to tighten policy if upside risks materialise.