The Bank of Jamaica decided to keep its benchmark interest rate at 7% for the thirteenth consecutive meeting in June 2024, highlighting significant progress in reducing inflation, which fell to 5.2% in May 2024, marking the third consecutive month within the target range.

With inflation expectations stabilizing and wage pressures moderating, the MPC unanimously agreed to begin a gradual easing of monetary policy, starting with reducing the BOJs absorption of liquidity from deposit-taking institutions.

The Jamaican economy grew by 1.5-2.5% in Q1 2024, with balanced GDP growth risks.

Despite mixed external indicators, robust local deposit growth, and a sound banking system, the fiscal policy stance poses no near-term inflation risk.

Future MPC decisions will hinge on sustained inflation control within the target range.

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