The Bank of Jamaica (BOJ) has sought to allay concern that a surge in election campaign expenditures will impact inflation or widen Jamaica’s fiscal deficit.

The concern was brought to the fore during the BOJ’s Quarterly Monetary Policy Press Conference this morning.

It comes as the central bank reported that it was in a wait-and-see mode, leaving its policy rate unchanged at 5.75%.

It’s concerned that inflation could rise later this year due to changing United States trade policies which could impact Jamaica’s import prices.

BOJ Governor, Richard Byles noted that while there will be more spending during the election campaign period, no fiscal risk is projected.

The widening of fiscal deficits due to elections has reportedly been a problem in other countries.

However, Senior Deputy Governor, Dr. Wayne Robinson said Jamaica’s fiscal deficit, so far remains aligned with the national budget.

Dr. Robinson stressed that based on the BOJ’s assessment, the country’s fiscal policy poses no current risk to inflation.