The Bank of Jamaica (BOJ) Friday said it will keep its policy rate unchanged at 7 per cent for the next eight weeks but signalled rate hikes could resume, “if the emerging risks to inflation materialise”.

The “emerging risks” identified by the central bank include “higher-than-projected future wage adjustments in the context of the tight domestic labour market, second-round effects from the sharp increase in agricultural price inflation over the first half of 2023, worsening supply chain conditions and continued increases in world oil prices”.

So far, inflation has been ticking up in each of the last four months — May (6.1 per cent), June (6.3 per cent), July (6.6 per cent), and August (6.8 per cent). The BOJ has so far projected that the September inflation rate will show the upward trend continuing, “supported by higher agricultural prices, education costs, oil prices, and wage pressures”. That data is expected around the National Heroes holiday.

https://www.jamaicaobserver.com/business/boj-signals-rate-hikes-could-resume/