KINGSTON, Jamaica — Bank of Jamaica has raised its policy rate by 50 basis points to 6.0 per cent, effective September 29, as the central bank responds to stronger inflation pressures at home and abroad.
The Monetary Policy Committee made the decision unanimously at meetings held on September 24 and 25. The increase follows an August decision to hold the rate at 5.50 per cent.
BOJ said headline inflation reached 7.9 per cent in August, up from 7.5 per cent in July, marking a third consecutive month above the upper limit of the Bank’s target range. It pointed to higher agricultural prices, elevated international commodity costs and tighter global financial conditions.
For Jamaica’s housing market, the immediate effect will depend on how commercial lenders respond. The BOJ policy rate is not a mortgage rate, but it influences wider borrowing conditions and can affect the direction of loan pricing over time.
That means prospective buyers and homeowners with variable-rate borrowing will be watching closely for any change in mortgage pricing, while developers and investors may face a slightly firmer financing environment if higher policy rates feed through to commercial credit.
The next BOJ policy decision is scheduled for November 18, 2026.
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