Jamaica Interest Rate

The Bank of Jamaica left its policy rate unchanged at 5.75% in August for the third consecutive meeting, citing low inflation and a stable foreign exchange market. Headline inflation in July stood at 3.3%, below the Bank’s 4–6% target range, while core inflation was 4.3%, supported by lower energy costs, improved agricultural supplies, and reduced electricity charges. The MPC expects inflation to remain below target over the coming months before gradually rising toward the center of the range. The domestic economy continues to show resilience, backed by strong remittances, increasing tourism arrivals, and historically high international reserves of US$6.1 billion. Real GDP growth for FY2025/26 is projected at 1–3%, driven by agriculture, mining, and tourism, before normalizing at 1–2% in subsequent years. The Committee reaffirmed its commitment to maintaining price and market stability and will adjust policy as needed amid ongoing global uncertainties.