BOJ Holds Interest Rate at 6%

The Bank of Jamaica, BOJ, has decided to hold its policy interest rate at six per cent, ending a streak of four consecutive quarters of reductions.

The move was announced on Thursday after the BOJ’s Monetary Policy Committee meetings earlier this week.

It aims to keep inflation within the target range of four to six per cent and maintain stability in the foreign exchange market.

The BOJ cited stabilising inflation expectations, a steady exchange rate and strong employment levels as justification for its decision.

However, the decision is likely to frustrate the private sector, which has been calling for more aggressive rate cuts to stimulate economic activity.

Business leaders argue that lower borrowing costs are needed to support investment and recovery, especially after economic contractions in late 2024.

The BOJ says inflation risks remain tilted to the upside, driven by global economic uncertainties, potential policy changes in the US and adverse weather conditions.

The committee cautioned that it could adjust its monetary policy if risks of inflation rising beyond the target materialise.