Caribbean News
Inflation Trending Down
#Kingston, Jamaica, August 21, 2022 – The Bank of Jamaica (BOJ) is encouraged by the declining out-turns recorded in the last three Consumer Price Index (CPI) reports, Governor, Richard Byles, has said.
The CPI, which measures variations (inflationary movements) in commodity prices for consumers, is administered by the Statistical Institute of Jamaica (STATIN).
Mr. Byles noted that having peaked at 11.8 per cent in April 2022, the rate of inflation fell to 10.9 per cent in May and June, and to 10.2 per cent in July.
“Declining international commodity prices, relative stability in the exchange rate, tighter liquidity management by the BOJ, and higher interest rates have allowed for this trend,” the Governor informed.
He was speaking during the Bank’s digital quarterly media briefing on Friday (August 19).
Mr. Byles said notwithstanding this “good trend”, the BOJ believes these conditions have not sufficiently solidified to ensure that inflation is sustainably placed on a downward path towards the institution’s four to six per cent target range, adding that “there remains some significant risks of reversal”.
He emphasised that the fragile geopolitical conflict between Russia and Ukraine, and Europe’s knock-on commodity price risks “cannot be ignored”.
Additionally, Mr. Byles said reported labour shortages in several sectors of the economy and pressures from recent local inflation experiences “carry the potential for future wage adjustments that could be inflationary”.
Further, the Governor said high inflation in the United States and other trading partners has prompted a programme of faster monetary adjustment, noting that this could cause capital outflows from Jamaica and exchange rate
depreciation, “if domestic monetary policy is not properly aligned”.
“These are some of the factors the Bank’s Monetary Policy Committee (MPC) considered when it met on August 16 and 17, 2022, and voted to increase the policy rate [on deposit-taking institutions’ (DTIs) overnight balances] by a further 50 basis points to six per cent, effective August 19, 2022,” he told journalists.
Mr. Byles informed that the Committee also decided to continue pursuing other measures to contain Jamaican dollar liquidity expansion and maintain relative foreign exchange market stability.
He said the MPC noted that the Bank’s strong international reserves reinforce its ability to support the foreign exchange market, as needed.
“This current decision has resulted in a cumulative increase in the policy rate of 550 basis points since October 2021 and has taken the policy rate to a level that the Committee considers appropriate,” Mr. Byles pointed out.
He added that if incoming data on inflation continues to track downwards, and the monetary adjustments in the US, in particular, are as expected, “the MPC agreed that it could pause its policy rate increases”.
Mr. Byles advised that the policy rate increases were complemented by the Bank’s adjusting the Net Open Position limits for DTIs, and selling approximately US$678 million to the foreign exchange market, since October 2021.
This, he said, was approximately 30 per cent more than the sum sold over the corresponding period to July 2021.
He also indicated that the Bank bought US$1.96 billion over the same period, primarily through the surrender system.
Mr. Byles said these policy actions contributed to the exchange rate being stabilised since the start of November last year.
“Without these actions, imported inflation, and hence the final prices faced by consumers, would have been much higher,” he further stated.
Mr. Byles said the BOJ anticipates that these measures will continue to cause interest rates on deposits to further increase, thereby making savings in Jamaican dollars more attractive, relative to foreign currency assets.
Photo Caption: Bank of Jamaica (BOJ) Governor, Richard Byles.
Contact: Douglas McIntosh
Caribbean News
Sandals Resorts and Beaches Resorts celebrate a night of wins, and take home a total of 16 titles at the 32nd Annual World Travel Awards
Providenciales, Turks and Caicos Islands (October 6th, 2025) – CaribCon, the Caribbean conference celebrating culture, innovation, and creativity, will welcome some of the region’s most influential voices to its inaugural edition in the Turks and Caicos Islands. The event, set to be a dynamic gathering of thought leaders and cultural icons, will feature impactful panel discussions, inspiring and intimate fireside chats and a flow of knowledge from some of the Caribbean’s brightest and best in the creative sector.
Elizabeth “Lady” Montano
Jamaica’s own Dr. Terri-Karelle Johnson, celebrated communications specialist, media personality, and global keynote speaker, will headline CaribCon as the official keynote speaker. Known for her ability to connect authentically and inspire audiences worldwide, Dr. Reid will share her insights on Caribbean identity, storytelling, and the power of representation in shaping global narratives. Another highlight of CaribCon will be the presence of Elizabeth “Lady” Montano, mother and former manager of soca superstar Machel Montano. Lady will launch her award-winning book, King of Soca, in which she is positioned as the ultimate insider, chronicling the evolution of one of the Caribbean’s most iconic entertainers. She will also share her invaluable experiences on nurturing talent, building a brand, and sustaining longevity in the competitive music industry in an intimate fireside chat. Adding further star power to the event is Simon Baptiste, CEO of Question Mark Entertainment, co-founder of ODOS, a global collective network spanning over 1000 professionals in 35 countries, film director, talent manager and creative strategist. Baptiste will bring his expertise to conversations on shaping the region’s creative sector and talent.
Simon Baptiste
“CaribCon is where the Caribbean’s voices, ideas, and creativity converge,” says Omega Simmons, founder of CaribCon and CEO of SOS Media. “Having leaders like Terri Karelle, Lady Montano, and Simon Baptiste share their stories and expertise truly embodies the spirit of this event. Their presence reinforces the power of Caribbean culture to inspire and influence on the world stage.” CaribCon will take place at the Shore Club in Providenciales, the Turks and Caicos Islands, from October 23rd to 26th. Attendees can look forward to networking opportunities, panel discussions, and meaningful dialogue to foster an ecosystem that develops the region’s creative sector and propels it onto the global stage.
Sponsors are:
Signature Experience Partners: Ministry of Tourism, Experience Turks and Caicos, and The Shore Club.
Other sponsors: PPID, Invest TCI, InterCaribbean Airways, Subtronic Sounds, Spotlight Communications.
Hotel partners: Ocean Club Resorts, Waterloo Hotel Management, The Somerset on Grace Bay and Ports of Call Resort.
For more information, tickets, and updates, visit www.caribcon.co or follow @caribconhq on all social media platforms.
For more information please email: contact@caribcon.co
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