Subscribe Login
Jamaica Observer
ePaper
The Edge 105 FM Radio Fyah 105 FM
Jamaica Observer
ePaper
The Edge 105 FM Radio Fyah 105 FM
    • Home
    • News
      • Latest News
      • Cartoon
      • International News
      • Central
      • North & East
      • Western
      • Environment
      • Health
      • #
    • Business
      • Business Bites
      • Social Love
    • Sports
      • Football
      • Basketball
      • Cricket
      • Horse Racing
      • World Champs
      • Commonwealth Games
      • FIFA World Cup 2022
      • Olympics
      • #
    • Entertainment
      • Music
      • Movies
      • Art & Culture
      • Bookends
      • #
    • Lifestyle
      • Page2
      • Food
      • Tuesday Style
      • Food Awards
      • JOL Takes Style Out
      • Design Week JA
      • Black Friday
      • #
    • All Woman
      • Home
      • Relationships
      • Features
      • Fashion
      • Fitness
      • Rights
      • Parenting
      • Advice
      • #
    • Obituaries
    • Classifieds
      • Employment
      • Property
      • Motor Vehicles
      • Place an Ad
      • Obituaries
    • More
      • Games
      • Elections
      • Jobs & Careers
      • Study Centre
      • Jnr Study Centre
      • Letters
      • Columns
      • Advertorial
      • Editorial
      • Supplements
      • Webinars
    • Home
    • News
      • Latest News
      • Cartoon
      • International News
      • Central
      • North & East
      • Western
      • Environment
      • Health
      • #
    • Business
      • Business Bites
      • Social Love
    • Sports
      • Football
      • Basketball
      • Cricket
      • Horse Racing
      • World Champs
      • Commonwealth Games
      • FIFA World Cup 2022
      • Olympics
      • #
    • Entertainment
      • Music
      • Movies
      • Art & Culture
      • Bookends
      • #
    • Lifestyle
      • Page2
      • Food
      • Tuesday Style
      • Food Awards
      • JOL Takes Style Out
      • Design Week JA
      • Black Friday
      • #
    • All Woman
      • Home
      • Relationships
      • Features
      • Fashion
      • Fitness
      • Rights
      • Parenting
      • Advice
      • #
    • Obituaries
    • Classifieds
      • Employment
      • Property
      • Motor Vehicles
      • Place an Ad
      • Obituaries
    • More
      • Games
      • Elections
      • Jobs & Careers
      • Study Centre
      • Jnr Study Centre
      • Letters
      • Columns
      • Advertorial
      • Editorial
      • Supplements
      • Webinars
  • Home
  • News
    • International News
  • Latest
  • Business
    • Business Bites
  • Cartoon
  • Games
  • Food Awards
  • Health
  • Entertainment
    • Bookends
  • Regional
  • Sports
    • Sports
    • World Cup
    • World Champs
    • Olympics
  • All Woman
  • Career & Education
  • Environment
  • Webinars
  • More
    • Football
    • Elections
    • Letters
    • Advertorial
    • Columns
    • Editorial
    • Supplements
  • Epaper
  • Classifieds
  • Design Week
BOJ banks on lower agricultural prices to keep inflation on track
BOJ expects domestic agricultural food prices to remain stable.
Business
BY ANDREW LAIDLEY Senior business reporter laidleya@jamaicaobserver.com  
July 1, 2021

BOJ banks on lower agricultural prices to keep inflation on track

As global supply chain disruptions persist, consumers are being told they might have to dig deeper into their pockets to meet their monthly expenses. This in the context of rising commodity prices (oil and grains) and increasing demand as economies reopen, leading to higher domestic transport and processed food inflation.

Notwithstanding, the Bank of Jamaica (BOJ) is optimistic there will not be any further significant increases.

The BOJ is reporting that consumers could get some reprieve in domestic agricultural food prices, a scenario which hinges on weather conditions remaining favourable. The central bank is hopeful that lower agricultural prices will help to temper inflation and keep consumer prices within its four to six per cent target range.

But there’s still a high level of uncertainty surrounding the inflation forecast, especially in the context of the emergence of new variants of the coronavirus. As a result, the BOJ has advised that inflation over the next year could be higher than had been projected.

The central bank noted that inflation in the short term could rise to, or above, the upper limit of the bank’s target range but stressed that this should not persist beyond a year.

That’s why the BOJ’s Monetary Policy Committee (MPC) has decided to maintain its accommodative monetary policy position. That refers to the interest rate on current account balances held by deposit taking institutions at the BOJ. The policy decision for the month of June, which was outlined in a release posted on BOJ’s website, stated that the interest rate will remain unchanged at 0.5 per cent.

In the release, the MPC said it will write to the finance minister to explain the temporary breach of the inflation target in April which came in at 3.8 per cent, which is below the lower limit of the bank’s target range.

Looking ahead, the committee is confident there will not be a similar recurrence in the coming months as a normalisation in the country’s gross domestic product (GDP) growth and some imported inflation are projected to support moderately higher core inflation over the next two years. The outlook for core inflation also contemplated the effects of one-off adjustments to selected regulated price.

The BOJ’s assessment of the risks to the GDP growth forecast suggests that GDP is still likely to fall within the range of 5.0 per cent to 8.0 per cent for financial year 2021/22 but the outlook is now closer to the upper end of the forecast range.

The BOJ said economic activity is expected to improve over the near term, relative to the previous forecast, due to the impact of stronger than expected improvements in the economies of Jamaica’s major trading partners. In this context, high frequency data suggest that growth in the services industry (particularly tourism) has been stronger than previously anticipated.

In addition, there are indications that private investments will be higher than earlier anticipated. However, other high frequency data point to weaker than anticipated performance of selected sectors such as mining.

The central bank highlighted that GDP growth could also be weaker than forecast if there is a third wave of virus infections both locally and in Jamaica’s major trading partners that results in a tightening of restrictions.

{"website":"website"}{"jamaica-observer":"Jamaica Observer"}
img img
0 Comments · Make a comment

ALSO ON JAMAICA OBSERVER

Orbán concedes defeat as Opposition sweeps Hungary’s elections after 16 years
International News, Latest News
Orbán concedes defeat as Opposition sweeps Hungary’s elections after 16 years
April 12, 2026
Viktor Orbán conceded defeat in Hungary’s elections on Sunday, ending his 16-year rule as the Opposition surged to a commanding victory. USA Today rep...
{"jamaica-observer":"Jamaica Observer"}
Man City must respect Arsenal in title showdown
International News, Latest News
Man City must respect Arsenal in title showdown
April 12, 2026
LONDON, United Kingdom (AFP) — Pep Guardiola insisted Manchester City must respect Arsenal when they face the Premier League leaders in a seismic titl...
{"jamaica-observer":"Jamaica Observer"}
Man suspected of killing twins in central France
International News, Latest News
Man suspected of killing twins in central France
April 12, 2026
BORDEAUX, France (AFP) — A man in his 60s was suspected of killing twin women on Sunday in a central French village, one of whom was his ex-partner, o...
{"jamaica-observer":"Jamaica Observer"}
Mt Pleasant’s Peter Gould steps down from PFJL Finance Commitee
Latest News, Sports
Mt Pleasant’s Peter Gould steps down from PFJL Finance Commitee
April 12, 2026
KINGSTON, Jamaica - Chairman of Mt Pleasant FA, Peter Gould, has stepped down with immediate effect from the Finance Committee of Professional Footbal...
{"jamaica-observer":"Jamaica Observer"}
Catherine Hall Health Centre to reopen in two weeks
Latest News, News
Catherine Hall Health Centre to reopen in two weeks
April 12, 2026
ST JAMES, Jamaica — The Catherine Hall Health Centre in St James, which sustained extensive damage during Hurricane Melissa last October, is set to re...
{"jamaica-observer":"Jamaica Observer"}
Keith & Tex reimagine ‘Perhaps, Perhaps, Perhaps’ in signature style
Entertainment, Latest News
Keith & Tex reimagine ‘Perhaps, Perhaps, Perhaps’ in signature style
April 12, 2026
When Keith and Tex decided last year to cover popular songs they loved,  Perhaps, Perhaps, Perhaps  was one of the selections the veteran duo agreed o...
{"jamaica-observer":"Jamaica Observer"}
Dancing for two on Road March
Entertainment, Latest News
Dancing for two on Road March
Observer Staff Reporter Shereita Grizzle 
April 12, 2026
The sun rose over Kingston like it knew this was no ordinary Sunday. It was Road March day—the grand finale of the 2026 carnival season—and from as ea...
{"jamaica-observer":"Jamaica Observer"}
18 finalists compete for Miss Universe Jamaica Westmoreland title
Entertainment, Latest News
18 finalists compete for Miss Universe Jamaica Westmoreland title
BY KEVIN JACKSON Observer Writer 
April 12, 2026
Hannah Sheree, pageant director for the Miss Universe Jamaica Westmoreland competition, says she is pleased with the lineup of 18 finalists who will b...
{"jamaica-observer":"Jamaica Observer"}
❮ ❯

Polls

HOUSE RULES

  1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper; email addresses will not be published.
  2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
  3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
  4. Please do not write in block capitals since this makes your comment hard to read.
  5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.
  6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.
  7. Lastly, read our Terms and Conditions and Privacy Policy

Recent Posts

Archives

Facebook
Twitter
Instagram
Tweets

Polls

Recent Posts

Archives

Logo Jamaica Observer
Breaking news from the premier Jamaican newspaper, the Jamaica Observer. Follow Jamaican news online for free and stay informed on what's happening in the Caribbean
Featured Tags
  • Editorial
  • Columns
  • Health
  • Auto
  • Business
  • Letters
  • Page2
  • Football
Categories
  • Business
  • Politics
  • Entertainment
  • Page2
  • Business
  • Politics
  • Entertainment
  • Page2
Ads
img
Jamaica Observer, © All Rights Reserved
  • Home
  • Contact Us
  • RSS Feeds
  • Feedback
  • Privacy Policy
  • Editorial Code of Conduct