Governor of Bank of Jamaica (BOJ), Dr. Brian Langrin has reaffirmed the central bank’s commitment to maintaining price stability and economic resilience while supporting the continued development of Jamaica’s financial ecosystem. “This commitment is clear: price stability is the foundation of Jamaica’s economic resilience, and Bank of Jamaica will act decisively to protect it,” Governor Langrin said during BOJ’s Quarterly Monetary Policy Report press conference on Thursday, August 20, at the Bank’s auditorium in Kingston. During this tenure, he added, the Bank will also give increased focus to digitalisation, financial inclusion and resilience, including efforts to broaden access to formal financial services for small businesses, communities and individuals facing barriers to participation. The Governor gave these commitments while delivering the monetary policy statement at his first press conference since assuming office.
In his statement, Governor Langrin acknowledged the stewardship of former Governor Richard Byles, whose tenure, he noted, strengthened Jamaica’s monetary policy framework and advanced the Bank’s institutional transformation.
Delivering the monetary policy statement on his second day in office, the Governor presented the Bank’s latest monetary policy decision within the context of the assessment and outlook for inflation and other macroeconomic variables. He explained that the Monetary Policy Committee’s (MPC’s) decision on August 17, to maintain the policy rate at 5.50 per cent per year, reflected the committee’s assessment that the recent rise in inflation has been driven primarily by temporary external and administrative factors. The Bank expects headline inflation, recorded at 7.5 per cent at July 2006, to gradually return towards the target range of between 4 per cent and 6 per cent over the near term.
The July increase in inflation, from 6.7 per cent in June, Dr. Langrin explained, was mainly driven by higher transport costs following the second phase of the 16 per cent taxi fare increase, higher international commodity prices affecting electricity rates and selected services and increased agricultural prices amid worsening drought and heat conditions.
The MPC expects inflation to remain above the target range during the September quarter before moderating as agricultural inflation eases and energy and transport-related price pressures decline.
Governor Langrin reiterated BOJ’s commitment to closely monitoring incoming data and inflation expectations and it’s preparedness to adjust the monetary policy stance should upside risks materialise and threaten the return of inflation to the target range. “The message today is straightforward: the Bank is holding the policy rate steady because the current inflation pressures appear largely temporary, but we remain alert and ready to act if those pressures become more persistent,” the Governor pointed out.
Commenting on the wider economy, Governor Langrin disclosed that for the financial year 2026/2027 the Bank anticipates real GDP growth in the range of 1 to 3 per cent.
Pointing to important financial buffers, the Governor noted that the foreign exchange market remained relatively stable despite elevated global risks, with the exchange rate appreciating by 2 per cent year-over-year as at August 13, compared to a 2.2 per cent depreciation a year earlier. Gross international reserves stood at US$6.7 billion, equivalent to 144.3 per cent of the reserve adequacy measure.
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