FX.co ★ Jamaica Leaves Interest Rate Unchanged

The Bank of Jamaica maintained its policy rate at 5.75% during the June meetings, asserting that the current approach is sufficient to ensure inflation stays within the 4.0–6.0% target range over the next two years. This decision reflects consideration of global uncertainties, such as changing trade policies, geopolitical tensions, and interest rate fluctuations in key economies. Although there are upward risks to the inflation outlook, inflation has remained stable. Annual headline inflation was recorded at 5.2% as of May 2025, consistent with the previous year, while core inflation stood at 4.6%. A reduction in international prices for grains, LNG, and oil has helped alleviate inflationary pressures, although geopolitical events have the potential to reverse this trend. The BOJ has reiterated its dedication to maintaining price stability and will continue to monitor economic data closely, prepared to adjust its policies if necessary.