THE Bank of Jamaica (BOJ) on Friday kept its key policy rate at 7 per cent for the fifth-straight meeting of its rate-setting monetary policy committee (MPC), as expected, but warned that inflation — which at 5.8 per cent in April is now in the 4 per cent to 6 per cent target range for the first time since July 2021 — is not expected to keep in the range over the near term.
“There are likely to be temporary upticks” above the target range over the next six months, the central bank said in notes accompanying its rate decision.
Still, its major worry will be core inflation. The measure which strips away the impact of food and fuel prices on the inflation rate remains at a stubbornly high 5.7 per cent compared to the full target of 4 per cent to 6 per cent. Given it shows an accurate reading of the true severity of inflation the BOJ will be keenly watching how it moves over the next few months before it decided
https://www.jamaicaobserver.com/business/rate-hike-pause-continues/
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