Bank Of Jamaica Holds Policy Rate

Bank of Jamaica (BOJ) announces its decision to hold the policy interest rate (the rate offered to deposit-taking institutions on overnight placements with BOJ) unchanged at 0.50 per cent per annum.

In general, monetary policy decisions taken by Bank of Jamaica are aimed at ensuring that the annual increase in the prices of consumer goods and services (i.e. inflation) remains within the Bank’s inflation target of 4.0 per cent to 6.0 per cent.

The decision to hold the policy rate unchanged was made by a unanimous vote by the Bank’s Monetary Policy Committee (The Committee/MPC). This decision was based on the MPC’s assessment that, despite recent increases in international commodity prices, the existing stance of monetary policy remains appropriate to support inflation within the target range over the next two years. The Bank’s accommodative monetary policy posture is also aimed at supporting a recovery in economic activity in Jamaica.

A summary of the discussions influencing the monetary policy decision by the MPC has been published on the Bank’s website (https://boj.org.jm/wp-content/uploads/2021/06/Summary-of-Discussions-and-Decisions-June-2021.pdf).

The next policy decision announcement date is 19 August 2021.

Summary of Discussions and Decisions – June 2021