Bank of Jamaica’s Monetary Policy Committee unanimously held the policy rate at 5.50% per year, judging the stance appropriate to contain second-round effects from elevated commodity prices and return inflation to target amid heightened upside risks. The rate was held at 5.75% from August through December 2025, cut by 25 basis points in February 2026 and maintained at 5.50% thereafter. The central bank will continue measures to preserve relative stability in the foreign exchange market. Headline inflation rose to 7.5% in July and is projected to remain above the 4.0%-6.0% target range during the September 2026 quarter before moderating toward target, while real gross domestic product growth is forecast at 1.0%-3.0% in fiscal year 2026/27 with risks skewed to the downside. The exchange rate has remained stable, limiting imported price pass-through, and international reserves remain healthy. Unresolved Middle East tensions and the intensifying Russia-Ukraine war have kept international commodity prices, particularly crude oil, elevated and volatile. The Committee said it is prepared to adjust its stance if upside inflation risks materialise and threaten the return to target.
2026-08-19Bank of Jamaica
Bank of Jamaica Holds Policy Rate at 5.50% Per Year
The Bank of Jamaica’s Monetary Policy Committee unanimously held the policy rate at 5.50% per year to contain second-round effects from elevated commodity prices and return inflation to target. Headline inflation reached 7.5% in July and is expected to remain above the 4.0%-6.0% target range during the September 2026 quarter, with the Committee prepared to adjust policy if upside risks materialise.