The Bank of Jamaica, BOJ, says it expects inflation to remain within target over the next two years.

In a statement yesterday, the Central Bank said as a result it has decided to keep the rate offered to deposit-taking institutions on overnight placements with the BOJ unchanged at 0.50% per annum.

According to the BOJ, the monetary policy decisions made are designed to ensure the annual increase in prices of consumer goods and services remains within the inflation target range of 4% to 6%.

It says its decision to hold the policy rate unchanged reflects an assessment that while inflation will be temporarily elevated over the next 4 to 5 months, it will remain within target over the next two years. 

The Central Bank says this revised inflation outlook is influenced by the impact of the recent flood rains on domestic agricultural supplies over the near term as well as the ongoing impact on the economy of the COVID-19 pandemic.