Jamaica Interest Rate

The Bank of Jamaica held its policy rate at 5.75% during its December meeting, despite heightened inflation risks stemming from the severe economic impact of Hurricane Melissa. The central bank noted that damage to infrastructure is now estimated at more than 40% of GDP, while agricultural losses amount to roughly half of output, increasing the likelihood that food, electricity and other prices will rise faster and remain elevated for longer. These supply disruptions are expected to push inflation above the 4–6% target range in early 2026, with rebuilding activity also lifting core inflation through stronger demand and higher costs. Economic activity is projected to contract sharply in 2025/26 before recovering in 2026/27, supported by external financing, with the central bank remaining ready to adjust policy if needed.