Jamaica’s central bank cut its policy rate by 25 bps to 6.75%. The MPC also decided to gradually reduce the central bank’s liquidity absorption from deposit-taking institutions. That follows a previous move in June 2024, which injected USD 20.5 bln into the financial system and lowered T-bill rates. Despite inflationary pressures from Hurricane Beryl, July 2024’s inflation stood at 5.1%, remaining within the BOJ’s target range of 4.0-6.0%. The MPC expects inflation to stay within this target for the next two years without near-term risks from fiscal policies.