BOJ Holds Policy Rate at 6%

The Bank of Jamaica, BOJ, has decided to hold its policy interest rate at 6 percent per annum while reducing the Standing Liquidity Facility, SLF rate, from 8 per cent to 7 percent.

The decision was announced on Thursday following the Monetary Policy Committee’s meetings the previous day.

The Bank of Jamaica says the decision aims to support inflation stability while enhancing monetary transmission mechanisms.

According to the BOJ, the MPC deliberated on the economic uncertainties surrounding the policies of Jamaica’s main trading partners.

Despite these external factors, the Committee concluded that the current monetary policy stance remains appropriate to sustain inflation within the target range over the next two years.

The central bank says the reduction in the SLF margin will lower the cost of short-term liquidity for commercial banks, which is expected to promote stability in short-term market interest rates.