The Bank of Jamaica (BOJ) today announced its decision to hold its policy interest rate unchanged at 0.50 per cent per annum.

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

This monetary policy decision taken by the BOJ is aimed at ensuring that the annual increase in the prices of consumer goods and services (i.e. inflation) remains within the bank’s inflation target range of 4.0 per cent to 6.0 per cent.

Today’s decision to hold the policy rate unchanged reflects the Central Bank’s assessment that while inflation will be temporarily elevated over the next 4 – 5 months, it will remain within target over the next two years.

This revised inflation outlook is influenced by the impact of the recent flood rains on domestic agricultural supplies over the near term as well as the ongoing impact on the economy of the Covid-19 pandemic.

According to the BOJ, “these and other factors influencing today’s monetary policy decision will be discussed at its monetary policy press briefing scheduled for Thursday November19, 2020.”

The BOJ reviews its policy interest rate each month. The next policy decision announcement date is December 18, 2020.