Bank Of Jamaica Will Hold Benchmark Rate Steady To Bolster Economic Recovery

• The Bank of Jamaica (BOJ) will maintain its dovish stance through end-2021 in an effort to support Jamaica’s economic recovery from the COVID-19 pandemic.
• Fitch Solutions forecasts that consumer price inflation will accelerate to an average of 5.8% y-o-y in 2021, up from 5.2% in 2020, due to rebounding consumer demand and higher energy prices.
• A food price shock poses upside risks to inflation and interest rate forecasts, as worse agricultural conditions than we currently expect could lead to a spike in headline inflation, causing the BOJ to hike its monetary policy rate.

(Source: Fitch Solutions)