November 22, 2024
The Bank of Jamaica’s (BOJ) Monetary Policy Committee (MPC) decided, at its meetings on 19 and 20 November 2024, to lower the policy rate by 25 basis points to 6.25% per annum, effective 22 November 2024, and manage domestic liquidity accordingly. The MPC will also continue to ensure stability in the foreign exchange market. This decision to ease monetary policy was influenced by an improved inflation outlook.
In October 2024, annual headline inflation was 4.9%, lower than September’s 5.7% and within the Bank’s target range of 4.0% to 6.0%, while core inflation (excluding agricultural food and fuel prices) was 4.5%. The Bank expects inflation to remain within its target range over the next two years, supported by declining international commodity prices and stable domestic demand.
However, potential risks include economic policy changes among Jamaica’s main trading partners, geopolitical tensions, and adverse weather conditions. Future interest rate adjustments will be gradual and dependent on economic data.
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