Bank of Jamaica (BOJ) has raised its policy interest rate by 50 basis points, from 5.50% to 6.0%, effective September 29, 2026. The decision was unanimous at the Monetary Policy Committee’s September 24–25 meetings.

The policy rate is what BOJ offers deposit-taking institutions on their current account balances at the central bank. It is not the rate that every borrower will immediately pay, but it helps shape the wider interest-rate environment.

Why did BOJ raise the rate?

BOJ said inflation pressures are likely to last longer than it had expected. It pointed to higher international energy and other commodity prices, worsening global uncertainty, and domestic agricultural prices affected by drought and El Niño conditions. The Bank said the increase is intended to limit the risk that higher prices become embedded in expectations and spread to more goods and services.

Jamaica’s annual headline inflation reached 7.9% in August, up from 7.5% in July. That was the third consecutive month above BOJ’s 4%–6% target range. Core inflation, which excludes agricultural food and fuel, was 5.2% in August. BOJ now expects headline inflation to rise further in the near term before returning to its target range around mid-2027, subject to how global conflicts develop.

What could this mean for you?

Borrowers: Banks and other lenders may review rates on new loans or variable-rate products, but the timing and size of any change will depend on each institution and the terms of each loan. An existing fixed-rate loan does not automatically change because BOJ raised its rate.

Savers and investors: Rates on some deposits and new fixed-income investments may become more attractive over time. Compare the actual yield, term, taxes and access to your money before making a decision. Higher rates can also affect company financing costs and how investors value shares.

The move comes as BOJ tries to contain inflation without losing sight of Jamaica’s economic recovery. Its next policy decision is scheduled for November 18, 2026.

Source: Bank of Jamaica monetary policy press release, September 28, 2026. This article explains possible effects; individual bank rates and loan terms may differ.