20.08.202521:40:08UTC+00Jamaica Holds Policy Rate at 5.75%

In August, the Bank of Jamaica decided to maintain its policy rate at 5.75% for the third consecutive time. This decision was made in light of the current low inflation and a stable foreign exchange market. In July, headline inflation was recorded at 3.3%, which falls below the Bank's target range of 4–6%. Core inflation registered at 4.3% and was supported by decreased energy costs, enhanced agricultural supplies, and lowered electricity charges. The Monetary Policy Committee (MPC) anticipates that inflation will remain below the target in the forthcoming months before gradually moving towards the midpoint of the target range. The domestic economy displays resilience, sustained by robust remittance inflows, a rise in tourist arrivals, and record-high international reserves amounting to US$6.1 billion. For the fiscal year 2025/26, real GDP growth is forecasted to be between 1–3%, primarily driven by the agriculture, mining, and tourism sectors, before stabilizing at a growth rate of 1–2% in the following years. The Committee reiterated its dedication to ensuring price and market stability and will adjust its policy as necessary in response to ongoing global uncertainties.