KINGSTON, Jamaica – Newly appointed Governor of the Bank of Jamaica (BOJ), Dr. Brian Langrin, says the financial institution “will act decisively” to protect price stability as it remains the foundation of the island’s economic resilience.
Newly appointed Bank of Jamaica Governor, Dr. Brian Langrin, speaking at the bank’s Quarterly Monetary Policy news conference.“Bank of Jamaica remains fully committed to its primary mandate of maintaining price stability. In this period of continued uncertainty, the Monetary Policy Decision (MPC) will closely monitor incoming data, assess the implications for inflation and inflation expectations, and remains prepared to adjust the monetary policy stance if upside risks materialise and threaten the return of inflation to the target range.”
Langrin, who began his tenure as BOJ Governor on Wednesday, told the bank’s Quarterly Monetary Policy news conference that he was looking forward to supporting the continued development of Jamaica’s financial ecosystem “to one that is more digital, inclusive and resilient.
“That means a financial system in which households and businesses can make and receive payments safely, efficiently and at lower cost; where responsible innovation is encouraged within a sound regulatory framework; and where access to formal financial services is broadened for small businesses, communities and individuals that still face barriers to full participation. It also means maintaining a system that is stable, secure and trusted as technology, customer needs and risks continue to evolve.”
He told reporters that he also intends to pursue this work within the bank’s modernised governance arrangements and in close collaboration with banks, credit unions, payment service providers, financial technology firms, the Financial Services Commission (FSC) and other regulators and stakeholders across the economy.
“Ultimately, this vision is about ensuring that Jamaica’s financial system serves the needs of our people and businesses while supporting sustainable growth and long-term economic stability,” he said, explaining why the MPC committee judged it appropriate to hold the policy rate steady at this time.
“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.”
Langrin said that at its meeting on Monday, the Monetary Policy Committee unanimously decided to maintain the policy rate at 5.50 per cent per year, agreeing also to remain proactive in preserving relative stability in the foreign exchange market.
“This decision reflects the MPC’s assessment that the recent rise in inflation is being driven primarily by temporary external and administrative factors, while domestic conditions remain broadly stable. Holding the policy rate steady at this time is therefore consistent with the Bank’s mandate, but it does not mean the Bank is standing still.”
The BOJ Governor said that headline inflation increased to 7.5 per cent in July, up from 6.7 per cent in June, and 3.3 per cent a year earlier. Core inflation rose to 5.2 per cent, from 5.0 per cent in June.
He said the July outturn mainly reflected three factors, each of which has a direct effect on the prices faced by households and businesses: First, the second phase of the 16 per cent increase in taxi fares contributed to higher transport costs. Second, higher international commodity prices passed through to electricity rates and selected services. Third, agricultural prices rose amid worsening drought and heat conditions.
“Looking ahead, the MPC expects inflation to remain above the 4 to 6 per cent target range during the September quarter, before gradually moving back toward the target range over the near term.”
Langrin said this temporary breach reflects higher energy and transport costs driven by continued geopolitical tensions, as well as elevated agricultural inflation. Core inflation is also projected to rise temporarily above the target range before easing.
“These pressures are expected to be partly contained by the relatively stable exchange rate. Inflation is expected to moderate as agricultural inflation eases and as energy- and transport related inflation declines, assuming that geopolitical tensions do not intensify further.”
Langrin said that while Jamaica’s economy continues to recover from Hurricane Melissa, that recovery remains uneven and is taking place against a highly uncertain global backdrop.
“For financial year 2026/27, the Bank anticipates real gross domestic product (GDP) growth in the range of 1 to 3 per cent. Growth is expected to remain within this range for the following two financial years, before normalising to one to two per cent over the medium term”.
He said that geopolitical tensions continue to weigh on Jamaica’s balance of payments and that the current account balance is projected to deteriorate in the near term due to higher fuel and freight prices and increased importation associated with post-hurricane rebuilding efforts.
“Despite this environment, Jamaica’s foreign exchange market has remained stable. As at the 13th of August, the exchange rate had appreciated by two per cent year-over-year, compared with a 2.2 per cent depreciation a year earlier.”
Langrin said that over the 12 months to end-July, the BOJ sold US1.1billionviatheBankofJamaicaForeignExchangeInterventionTradingTool(B-FXITT),broadlyinlinewiththepreviousyear,whilepurchasingUS803.3 million more than it sold.
He said gross international reserves remain healthy at US$6.7 billion, equivalent to 144.3 per cent of the adequacy measure, adding “these external buffers are important because they give the bank room to respond to market conditions while keeping its primary focus on guiding inflation back to the target range.”
Langrin told reporters that these developments point to continued resilience in the economy and financial system, but the outlook remains subject to risks that require careful policy judgment.
“The risks to inflation over the next eight quarters are skewed to the upside, meaning, essentially, that inflation could worsen. The main upside risk is a more extended or broader conflict in the Middle East, and further escalation of the Russia-Ukraine war.
“Domestic risks include stronger than anticipated fiscal spending associated with rebuilding efforts, and more prolonged drought conditions. A rise in inflation expectations could also contribute to stronger second round effects. On the downside, weaker consumer purchasing power could temper demand and moderate price pressures.”
Lamgrin said that the BOJ is very mindful that higher prices are not abstract figures for Jamaican households, particularly lower-income families and fixed-wage earners. Food, transport and energy costs have a direct impact on the cost of living, while businesses face higher operating and input costs.
