IMF Backs NOJ Rate Hike Amid Inflation Concerns | Business Day
Jamaicans hoping for early relief from high interest rates may have to wait longer.
The International Monetary Fund has endorsed the Bank of Jamaica’s September policy rate increase, arguing that monetary policy must remain sufficiently tight to contain persistent inflationary pressures.
In its latest assessment of Jamaica’s economy, the Fund says the decision to increase the policy rate by 50 basis points to six per cent was appropriate, given the continued rise in food and energy prices.
Inflation has already exceeded the Central Bank’s target range of four to six per cent.
And while the IMF expects inflation to return to that range by mid-2027, it is warning that the risks remain on the upside.
Prolonged conflict in the Middle East, higher international commodity prices and possible drought conditions associated with El Niño could keep prices elevated.
The Fund says monetary policy must remain focused on preventing these price increases from spreading throughout the wider economy.
It is also calling for greater exchange rate flexibility and a gradual reduction in Central Bank interventions in the foreign exchange market.
The IMF’s assessment comes just days before the Bank of Jamaica’s next monetary policy decision, scheduled for November 18.
This Clip was aired in Prime Time News On November 11`, 2026
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