Bank of Jamaica Keeps 5.5% Policy Rate As Inflation Risks Persist

The Bank of Jamaica has decided to leave its main policy rate at 5.50 per cent a year.

The central bank said the path for inflation is still difficult to predict, with global commodity costs, especially crude oil, continuing to rise sharply. It pointed to problems connected to tensions around the Strait of Hormuz, where shipping movements have been disrupted during military activity involving United States and Iranian forces.

The BOJ also cautioned that higher inflation overseas could affect local prices in Jamaica and weigh on economic activity. In that environment, some are urging the central bank to hold its key rate steady for at least the next two quarters, even as inflation pressures intensify.