February 21, 2025
The Bank of Jamaica’s Monetary Policy Committee (MPC) convened on 18-19 February 2025 to evaluate the country’s economic conditions amidst global uncertainties and positive domestic trends. The MPC observed that inflation is projected to remain within the 4.0-6.0% target range over the next eight quarters, supported by a stable exchange rate and steady private sector inflation expectations. Employment levels are high, with moderating wage pressures. Real GDP is anticipated to recover in 2025 following declines in late 2024. The current account surplus is expected to continue, bolstered by healthy international reserves.
On the global front, the US Federal Reserve has paused monetary loosening, and US bond yields are rising. As a result, the MPC decided to maintain the policy rate at 6.00% per annum and ensure stability in the foreign exchange market. January 2025 headline inflation was reported at 4.7%, down from 7.4% in January 2024, with core inflation at 4.0%, consistently below 6.0% since July 2023. While inflation is expected to remain within the target range, risks are skewed to the upside due to potential US policy changes and adverse weather in Jamaica. The MPC remains committed to maintaining low and stable inflation and will adjust policies if necessary to address these risks.
Source: (Bank of Jamaica)
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