KINGSTON, Jamaica — Bank of Jamaica has raised its policy rate by 50 basis points to 6.0 per cent, effective September 29, after its Monetary Policy Committee concluded that inflation pressures are likely to persist longer than previously expected.
The decision, announced September 28, follows a 5.50 per cent policy rate in August. BOJ said headline inflation reached 7.9 per cent in August, up from 7.5 per cent in July and above the central bank’s 4.0 to 6.0 per cent target range for a third consecutive month.
The Bank pointed to persistently high international commodity prices, tighter global financial conditions and higher domestic agricultural inflation linked to intensified El Niño conditions. BOJ said the increase is intended to limit second round inflation effects and prevent elevated prices becoming embedded in expectations.
What it could mean for housing
The BOJ policy rate is not a mortgage rate. Individual banks and mortgage providers set their own lending rates, so any response can differ by institution and product. A tighter policy environment can, however, influence wider funding and borrowing conditions over time, making financing conditions worth watching for buyers, developers and homeowners.
BOJ’s next policy decision is scheduled for November 18, 2026.
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