the rate hikes could pause.

THE Bank of Jamaica (BOJ) has raised its key policy rate for an eighth time since October last year, taking it to an almost 10-year high, but is already signalling that it “is prepared to pause” the rate increases “if the incoming data continue to reflect a downward track for inflation”.

On Thursday the central bank said its monetary policy committee (MPC) “unanimously agreed to further increase the policy rate by 50 basis points to 6.00 per cent.”

That is the highest BOJ’s policy rate has been since January 2013 when it was 6.25 per cent.

The Bank’s current decision has resulted in a cumulative increase in the policy rate of 550 basis points since October 2021, which has taken the policy rate to a level that the monetary policy committee tentatively considers to be appropriate.

The decision was arrived at after two days of meetings on August 16 and 17. The next meeting for a rate decision is scheduled for September 29. The BOJ’s MPC meets roughly every six weeks or about eight times per year.

While at its l

https://www.jamaicaobserver.com/business/appropriate/