BOJ Keeps Interest Rate at 5.75%

The Bank of Jamaica’s Monetary Policy Committee, MPC, has opted to maintain the central bank’s policy interest rate at 5.75 per cent, due to inflation concerns.

This follows its latest meetings held on June 25 and 26, 2025.

The decision comes amid heightened global uncertainty stemming from geopolitical developments and evolving trade policies.

The central bank noted these could shift inflation risks to the upside.

Despite the challenges, the BOJ agreed unanimously that the current monetary policy stance remains appropriate to support inflation remaining within the central bank’s target range of 4 to 6 per cent over the next two years.

The current point-to-point inflation rate is 5.2 per cent.

In addition to holding the policy rate steady, the BOJ says it will continue its efforts to maintain stability in the foreign exchange market.

It says inflation expectations among private sector players have stabilised.

The central bank also says key international inflation drivers, including prices for grains, oil, and liquefied natural gas have generally trended downward.

However, the BOJ has warned that prolonged or intensified geopolitical tensions could reverse that trend, pushing global commodity prices higher.

The central bank noted that while the direct impact of recent changes in global trade policy on domestic inflation is expected to be moderate, potential second-round effects could be greater than initially anticipated.

This is the second quarter in a row that the central bank has chosen to hold interest rates.