Jamaica Holds Policy Rate at 5.75%

The Bank of Jamaica’s Monetary Policy Committee decided to hold the policy rate at 5.75% during its September meetings, citing low headline inflation and stable core inflation within the target range. Headline inflation was 1.2% in August, below the 4–6% target, due to temporary factors such as improved agricultural supply after Hurricane Beryl, lower public transport fares, and a reduction in the GCT on electricity, while core inflation remained at 4.2%. Economic growth continues, with the September quarter estimated at 3–4%, supported by a tight labor market and rising wages, indicating that low headline inflation is not demand-driven. The MPC noted that inflation risks are skewed to the upside, including potential higher imported inflation from tariffs and geopolitical tensions, though lower commodity prices could ease pressures. The MPC reaffirmed its commitment to maintaining low and stable inflation and will continue monitoring economic developments to adjust policy as needed.