KINGSTON, Jamaica — The Bank of Jamaica (BOJ) says it will hold the policy interest rate offered to deposit-taking institutions on overnight placements with BOJ unchanged at 0.50 per cent per annum, effective Wednesday, August 19.

The bank said its monetary policy decisions are aimed at ensuring that the annual increase in the prices of consumer goods and services remains within the 4.0 per cent to 6.0 per cent inflation target set by the Government.

It said the decision to hold the policy rate reflects BOJ’s assessment that inflation is projected to average 4.6 per cent over the next eight quarters, slightly higher than the bank’s previously forecasted average of 4.4 per cent at last assessment in May 2020.

The revised inflation outlook for the next eight quarters is primarily influenced by acceleration in agriculture and processed food price inflation, higher energy costs, as well as increases in some regulated prices, BOJ said.

The central bank said these and other factors influencing today’s monetary policy decision will be discussed at Bank of Jamaica’s upcoming monetary policy press briefing scheduled for Wednesday, August 26.

The next policy decision announcement date is September 30, 2020.