FX.co ★ Jamaica Cuts Interest Rate to 5.75%

In its May 2025 meeting, the Bank of Jamaica lowered its monetary policy rate by 25 basis points to 5.75%, reflecting headline inflation remaining within the target range of 4.0-6.0%. Inflation on an annual basis increased to 5.3% in April 2025, mirroring the figure from April 2024. Meanwhile, core inflation, which excludes agricultural food products and fuel, stayed steady at 4.4%. The early months of the year saw slight economic growth, with the domestic GDP up by 0.2% quarter-on-quarter in the first quarter of 2025, following a previous contraction. Imported inflation was contained, owing to stable exchange rates and a decline in global commodity prices. Both inflation expectations and the foreign exchange market maintained their stability. Looking forward, it is anticipated that headline inflation will trend toward the lower end of the target range in the next two years, contingent on moderate decreases in oil prices and stable inflation expectations.