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A view of the Noel Nethersole statue standing in front of Bank of Jamaica in downtown Kingston, Jamaica. (Photo: Miami Herald)

Bank of Jamaica holds policy rate

A view of the Noel Nethersole statue standing in front of Bank of Jamaica in downtown Kingston, Jamaica. (Photo: Miami Herald)

The Bank of Jamaica yesterday announced its decision to hold the policy interest rate unchanged at 0.50 per cent per annum, effective today.

The Bank of Jamaica in downtown Kingston, Jamaica (Photo: Jamaica Observer)

The policy interest rate is offered to deposit-taking institutions on overnight placements with the central bank.

The bank said its monetary policy decisions are aimed at ensuring that the annual increase in the prices of consumer goods and services remains within the 4.0 per cent to 6.0 per cent inflation target set by the Government.

The central bank explained that its decision to hold the policy rate reflects its assessment that inflation is projected to average 4.6 per cent over the next eight quarters, slightly higher than its previously forecasted average of 4.4 per cent at the last assessment in May 2020.

“The revised inflation outlook for the next eight quarters is primarily influenced by acceleration in agriculture and processed food price inflation, higher energy costs, as well as increases in some regulated prices,” the bank added.

It said these and other factors influencing the monetary policy decision will be discussed at its upcoming monetary policy press briefing scheduled for Wednesday, August 26, 2020.

The next policy decision announcement date is September 30, 2020.