BOJ raises monetary policy rate by 50 basis points to 6.0% effective today

September 29, 2026

The Bank of Jamaica (BOJ) has raised its monetary policy rate by 50 basis points to 6.0 per cent, effective today.

The BOJ’s Monetary Policy Committee (MPC) unanimously decided to increase the policy rate on the current account balances at the Central Bank.

The MPC says its decision in August to maintain the policy rate was appropriate based on the assessment of the risks at that time.

It said since then, the escalation of tensions in the Middle East and the Russia-Ukraine conflict have resulted in a worsening of persistently high commodity prices consistent with the assumptions underpinning the Bank’s severe scenario.

In addition, higher domestic agricultural inflation is likely to persist for a longer-than-projected period due to the intensification of the El Niño weather condition and its negative impact on crop yields.

BOJ further stated that global financial conditions have also tightened more rapidly than projected in the context of the prevailing elevated uncertainty.

The Committee assessed that in the context of these developments, inflation pressures are likely to persist for longer than originally anticipated.

It outlined that an increase in the policy rate is, therefore, necessary at this juncture to limit second-round effects.