BOJ Keeps Policy Rate at 5.75%

The Bank of Jamaica’s Monetary Policy Committee, MPC, has voted unanimously to keep its policy rate unchanged at 5.75 percent.

In a statement on Wednesday, the BOJ says the current stance is appropriate to keep inflation within its 4 to 6 percent target range over the next two years.

The decision followed meetings on August 18 and 19, where the Committee weighed low domestic inflation against lingering global uncertainties.

The MPC also reaffirmed its commitment to preserving stability in the foreign exchange market.

According to the Statistical Institute of Jamaica, headline inflation in July 2025 was 3.3 percent.

This is down from a year earlier and below the lower end of the target.

Core inflation stood at 4.3 percent.

The Central Bank notes that the decline in prices reflected falling energy costs, reduced electricity charges due to a lower GCT rate, and improved agricultural supplies.

Looking ahead, the BOJ projects inflation will remain below target in the short term but rise towards the centre of the range as temporary factors ease.

The central bank says Jamaica’s external accounts remain strong, with remittances and tourism earnings growing and international reserves reaching a record US $6.1 billion at July 2025.