By Marlene Freeman
The Bank of Jamaica (BOJ) says it continues to honour its commitment to hold the policy rate at 5.75%.
The Bank’s Monetary Policy Committee (MPC), during its meetings on June 25 and 26 determined that its current policy stance continues to be appropriate to support inflation remaining within the target range over the next two years.
This view is in a context of continued uncertainty around global trade policy and the path of interest rates in the major developed markets, as well as recent geopolitical developments that have shifted inflation risks to the upside.
The Committee therefore agreed unanimously to hold the policy rate — the rate offered to deposit-taking institutions (DTIs) on overnight placements with the BOJ — at 5.75% per annum.
It also decided to continue taking measures to preserve relative stability in the foreign exchange market.
The BOJ said while the risks to the inflation forecast are skewed to the upside — which means that inflation could be higher than projected — it expects inflation to remain within its target range of 4.0 to 6.0% over the next eight quarters.
