BOJ Governor Langrin vows to prioritise price stability amid rising inflation

Newly installed BOJ Governor Dr Brian Langrin has signalled that maintaining price stability will remain the Bank of Jamaica’s (BOJ) overriding priority.

He noted that inflation risks are tilted to the upside, but stressed that policymakers stand ready to tighten monetary conditions if necessary to keep prices under control.

At his first quarterly press conference as governor, Langrin underscored that the Monetary Policy Committee’s (MPC) decision to keep the policy rate unchanged at 5.5 per cent should not be interpreted as passivity, even as inflation accelerated to 7.5 per cent in July, up from 6.7 per cent in June.

The central bank expects inflation to remain above its four to six per cent target range during the September quarter before gradually easing.

“The risks to inflation over the next eight quarters are skewed to the upside,” Langrin said, citing the possibility of a wider Middle East conflict, further escalation of the Russia-Ukraine war, stronger domestic spending linked to reconstruction activity, and prolonged drought conditions.

While forecasting that inflation pressures should moderate as agricultural, energy and transportation costs ease, the governor made clear that the MPC remains vigilant.

“The MPC will closely monitor incoming data ... and remains prepared to adjust the monetary policy stance if upside risks materialise and threaten the return of inflation to the target range,” Langrin said.

“Price stability is the foundation of Jamaica’s economic resilience, and the Bank of Jamaica will act decisively to protect it.”

He also outlined his broader vision for the central bank, placing stable and predictable prices at the centre of its mandate, while emphasising financial system resilience and institutional modernisation.

“Price stability, low and stable predictable prices, will always be number one,” Langrin said.

“We’re an independent central bank. That is our key mandate. Financial system stability ... will continue.”

He added that the institution would pursue new technologies and analytical tools to improve efficiency and strengthen its service to the public.

A major plank of that agenda is greater competition in the banking sector through easier customer mobility and improved transparency.

Senior Deputy Governor Dr Wayne Robinson acknowledged that Jamaica’s banking market remains heavily concentrated, with two institutions controlling roughly 60 per cent of deposits and transactions, but argued that competition can still be strengthened by empowering consumers.

“That isn’t going to change overnight,” Robinson said. “What we are pursuing ... is mechanisms that can allow more competition in this structure. And the way to do that is actually to empower consumers.”

Central to that effort is the rollout of a centralised electronic Know Your Customer, or eKYC, platform. Robinson said the system would simplify onboarding requirements, reduce paperwork, and allow customers to open and switch accounts more easily.

The BOJ is currently completing procurement for the platform and expects to conclude that process within the next two to three months.

The bank is also developing a consumer “shopping platform” that will allow Jamaicans to compare banking products, rates and services in one place. Robinson said the portal is expected to be launched within months.

According to both Langrin and Robinson, the reforms should lower switching costs, improve transparency and make customers more willing to move deposits and loans between institutions.

Langrin added that the eKYC utility would also reduce compliance and onboarding costs for banks, improving efficiency across the financial system, while fostering stronger competition.

- Neville Graham

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