Jamaica Central Bank Cuts Rates for the Fourth Consecutive Meeting

Forex - The Bank of Jamaica (BoJ) continued its process of interest rate cuts, which began in August after five years, with a 25 basis point reduction at its fourth consecutive meeting. According to the BoJ's statement, the benchmark interest rate was lowered from 6.25% to 6.00%. The BoJ Monetary Policy Committee (MPC) determined that the current policy stance remains appropriate. According to the committee, any further decision on policy easing will depend on the trajectory of inflation towards the lower bound of the target range. The committee noted that interest rates on bank loans and other credit conditions remain high and restrictive, and that banks may have the opportunity to make downward adjustments to these rates. The statement also indicated, “Despite the positive trends in inflation, the Bank acknowledges that consumer prices in Jamaica are still high. In this context, the Bank continues to adhere to its primary objective of maintaining low, stable, and predictable inflation.”