For the second time this year, the Bank of Jamaica (BOJ) has reduced its policy rate by 25 basis points.

Effective tomorrow, October 1, the central bank’s indicative policy interest rate is 6.50% per annum, down from 6.75%.

This is only the second time since October 2022, that the BOJ’s Monetary Policy Committee has moved to cautiously ease its monetary policy stance.

The reduction means that commercial banks and other deposit-taking institutions could commence lowering the rates at which they offer loans and other lines of credit to consumers.

It follows a similar reduction in August this year when the central bank reduced the policy rate from 7.0% per annum.