• The U.S. Federal Reserve held interest rates steady on Wednesday, citing still-elevated inflation alongside solid economic growth, and giving little indication in its latest policy statement of when borrowing costs might fall again. "Economic activity has ‌been expanding at a solid pace," Fed policymakers said in the statement after voting 10-2 to hold the U.S. central bank's benchmark interest rate in the 3.50%-3.75% range following a two-day meeting.
• Both Governor Christopher Waller, a contender to replace Fed Chair Jerome Powell when his term as central bank chief ends in May, and Governor Stephen Miran, currently on leave from his job as an economic adviser at the White House, dissented in favour of a quarter-percentage-point rate cut. The statement from the policy-setting Federal ‌Open Market Committee (FOMC) offered no hint about when another reduction in borrowing costs might come, noting that "the extent and timing of additional adjustments" to the policy rate would depend on incoming data and the economic outlook.
• Meanwhile, inflation "remains somewhat elevated," the central bank said, while the job market has "shown some signs of stabilisation. Fed policymakers ahead of this week's meeting had largely characterised the job market as roughly in balance, with smaller gains matching the slower growth in the numbers of those seeking employment as a result of the Trump ⁠administration's stricter immigration policies. The unemployment rate in December fell to 4.4%.
• The decision to maintain borrowing costs at their current level effectively pauses the Fed's current monetary easing cycle, which begun near ⁠the end of the Biden administration ⁠and continued after a pause of roughly nine months during President Donald Trump's second term in the White House, on hold again after three quarter-percentage-point reductions at the central bank's final three meetings of 2025.
• The rate cut at the December 9-10 meeting left the FOMC unusually divided. Three of its 12 voting members dissented, with one in favour of an even deeper cut and ‍two in favour of no reduction at all.
• Those same divisions have carried into 2026, and recent economic data have done little to change the outlook for those officials most concerned that inflation is not progressing back to the central bank's 2% target, or for those more worried about a rise in the unemployment rate if credit conditions aren't loosened to encourage more spending and investment. It's a debate that could shape the first weeks in office of ‍whoever is named to replace Powell in the top Fed job, a decision that Trump is expected to announce soon. Powell's successor is expected to be in place to run the central bank's meeting in June. Investors currently expect the Fed to keep rates on hold until then

(Source: Reuters)

• The Bank of Japan considered mounting inflationary pressures stemming from a weak yen and labour shortages, among other factors, as key influences for the timing of additional interest rate hikes, according to minutes from a December meeting.
• The discussions reflected the board's readiness to continue raising still-low borrowing costs even after its decision in December to raise the policy rate to a 30-year high of 0.75%. While some members preferred treading cautiously on future rate hikes, others said inflation was becoming more entrenched and persistent as companies pass on wage increases alongside raw material costs, according to the minutes. A weak yen adds to inflationary pressure by pushing up import costs at a time when more businesses were actively raising wages and prices, some members said.
• A weak yen has become a source of concern for policymakers, as it hurts households through rising cost of living, a focal point in Japan's general election on February 8. After sliding near the key 160-per-dollar mark earlier in January, the yen rallied as much as 3% over the last two sessions to around 153 amid speculation of U.S. and Japan rate checks - often seen as a precursor to official intervention. One member said the yen's fall and rising long-term interest rates were partly due to the BOJ's policy rate being too low relative to the rate of inflation, the minutes said.
• With core consumer inflation exceeding the BOJ's 2% target for nearly four years, markets speculate that additional price pressure from a weak yen could lead to a rise in interest rates again in the coming months.
• While most members said the BOJ should not have a pre-set timeline on the pace of rate hikes, one suggested tightening in "intervals of a few months" as its policy rate remained distant from levels deemed neutral to the economy, the minutes showed.
• Another member underlined the importance of assessing a broad range of indicators, including anecdotal data, to determine whether a sustained mechanism of moderate wage and price increases had taken hold.

(Source: Reuters)

• United Oil & Gas Plc has started a key offshore exploration programme in Jamaica, marking an important step forward on its Walton Morant Licence. The survey vessel, R/V Gyre, departed Trinidad on January 19th for Jamaica. After routine inspections, offshore work is planned to begin this week.
• Jamaica has long attracted petroleum interest due to seismic data indicating significant hydrocarbon potential offshore. Previous surveys have detected oil-like substances, but confirmation requires seabed sample analysis to determine whether the material is crude oil or other hydrocarbons. The current survey focuses on the Walton Morant Licence zone, which spans Jamaica’s entire southern coast.
• After the offshore work is completed, recovered samples will be sent to a specialist laboratory in the United States for geochemical analysis. Preliminary results are expected one to two months after the survey ends, with full results anticipated by mid-2026. The goal is to confirm the presence of thermogenic hydrocarbons^[1], helping to reduce exploration risk and guide future drilling decisions.
• In a company press release, Brian Larkin, CEO of United Oil & Gas, said the survey marks a key milestone in the Jamaica exploration programme. “With the R/V Gyre now en route, we are entering an important phase of data acquisition that will significantly improve our understanding of the basin. The results will be critical in de-risking the licence and guiding future strategic decisions as we continue to unlock the potential of over 7.1 billion barrels of unrisked prospective resources in this highly prospective offshore area.”
• Energy Minister Vaz, during a media tour of the vessel at the Port Royal Cruise Terminal on Monday, January 26, 2026, said the initiative is part of the Government’s broader strategy to strengthen energy security while maintaining strong environmental safeguards. “This activity represents an early-stage, non-intrusive exploration effort aimed at improving our technical understanding of Jamaica’s offshore petroleum potential,” Vaz said. “It does not authorise drilling or production. It is a data-gathering exercise that supports informed, responsible, evidence-based decision-making.”. For Vaz, the exercise marks a cautious step forward rather than a dramatic breakthrough.

(Sources: United Oil and Gas Press Release and Caribbean News Weekly)

^[1] Thermogenic hydrocarbons are oil and natural gas compounds (methane, ethane, propane, butane) formed by the thermal cracking of organic matter (kerogen) in sedimentary rocks at high temperatures and pressures deep underground.

• The Port of Kingston is poised to benefit from another wave of major investment, building on more than US$500Mn (J$80Mn) spent over the past decade to modernise and expand port infrastructure.
• Kingston Wharves Limited (KWL), one of Jamaica’s two port operators, has received a US$25Mn construction quote for a multi-level car park designed specifically to facilitate the transhipment of motor vehicles from Jamaica to global markets. The proposed investment covers only the physical storage infrastructure for vehicles in transit.
• KWL Chief Executive Officer Mark Williams made the disclosure while speaking at the 21st Jamaica Stock Exchange (JSE) Regional Investments and Capital Markets Conference 2026, held from January 20–22. He underscored that Jamaica is rapidly emerging as a serious competitor in the global motor vehicle transshipment market.
• This comes after KWL strategically invested over US$60Mn in the last four years, in both physical and digital infrastructure. As part of the US$60Mn plan, the company completed the first phase of its warehouse complex on Ashenheim Road in Kingston as well as its Berth 7 redevelopment project, which expanded the port’s capacity by 25% to handle one million Twenty-foot Equivalent Unit in container operations annually. A port handling one million TEUs annually is considered a major hub, indicating significant, high-volume trade, vessel traffic, and logistical activity. 
• That said, sustained growth will depend on accelerated development of physical infrastructure at the Port of Kingston, including expanded berthing capacity and additional backlands. To this extent, KWL has approached the government to acquire portions of Tinson Pen for its expansion, highlighting that this move is consistent with the government’s proposal to have Jamaica become a significant node in global logistics.
• For this to happen, Williams lamented that, “what’s required is substantial investment in physical infrastructure, in equipment and more importantly in technology. You have to facilitate the movement of those cars when you have the largest car ship in the world visiting Jamaica, and that car vessel has 9,402 cars; we need space to put them, it requires huge capital investment…It therefore means you need land space, you need to expand the port boundaries.”
• KWL earnings grew 18.4% to $2.57Bn in the nine months to September 2025 driven by higher revenues (19.9%), supported by KWL’s Terminal Operations and Logistics Services Divisions. The company is expected to see some tailwinds from the post Hurricane Melissa recovery efforts, though the backlog at the ports could present upside risk to costs.
• KWL’s stock price has decreased by 0.3% year-to-date, closing at $34.33 as at Tuesday, January 27, 2026. At this price, the stock is trading at a price-to-earnings (P/E) ratio of 15.97x, which is higher than the Main Market Energy, Industrials and Materials Sector average of 14.38x.

(Sources: Our Today, NCBCM Research)

• Exports from the Dominican Republic to Commonwealth countries increased by 44.0% in 2025, rising from US$1.398Bn in 2024 to US$2.482Bn, according to the 2025 Annual Report of the Commonwealth Countries Roundtable. The growth highlights the expanding role of Commonwealth nations as key trade partners for Dominican exports, foreign investment, and tourism.
• India became the second-largest export market for the Dominican Republic, with shipments totaling US$1.515Bn, surpassed only by the United States. Other major Commonwealth destinations included Canada, Jamaica, the United Kingdom, Guyana, Trinidad, Singapore, Barbados, Australia, and Malaysia, reflecting a growing diversification of Dominican foreign trade.
• The report emphasises that the 56 Commonwealth countries represent 33.0% of the global population and import approximately US$224.0Bn annually in food products, presenting significant opportunities for Dominican producers and exporters. It also highlights strong Commonwealth investment in the Dominican Republic, particularly in sectors such as banking, mining, manufacturing, energy, free trade zones, agriculture, and tourism.
• Looking ahead, 2026 is expected to be a strong year for trade and investment, supported by the country’s international positioning and the upcoming Commonwealth Heads of Government Meeting in the Caribbean.

(Source: Dominican Today)

• The Irfaan Ali administration presented a record G$1.558T National Budget for 2026, representing a 12.7% year-on-year increase, with no new taxes, aimed at providing direct financial support to citizens, expanding social services, and supporting economic activity.
• The budget includes a G$100,000 National Cash Grant for every Guyanese aged 18 and over, expected to cost approximately G$60.0Bn, alongside expanded support for school-aged children through a combined G$85,000 in grants per child, impacting roughly 206,000 students and amounting to G$17.5Bn in transfers.
• Education measures also include continued government funding for up to eight CSEC and CAPE subjects per child, benefiting nearly 14,000 students, and the introduction of a G$20,000 annual transportation grant per student.
• Old Age Pensions will rise from G$41,000 to G$46,000 per month, benefiting around 95,000 pensioners, while Public Assistance payments will increase from G$22,000 to G$25,000 per month, supported by additional allocations for transportation assistance and social care infrastructure.
• Worker stipends under programmes including Pathway Workers, Community Enhancement Workers, Community Service Officers, and Community Policing Groups will increase from G$40,000 to G$50,000 per month, amounting to an estimated G$14.0Bn in additional annual spending.
• Tax and cost-of-living measures include raising the income tax threshold to G$140,000 per month, eliminating net property taxes on individuals, removing corporate taxes on agriculture and agro-processing, expanding VAT and duty exemptions across selected goods and vehicles, and setting aside G$9.0Bn to offset rising living costs.

(Source: Caribbean National Weekly)

• India and the European Union struck a long-delayed deal on Tuesday that will slash tariffs on most goods, aiming to boost two-way trade and reduce reliance on the United States amid growing global trade tensions.
• The deal is expected to double EU exports to India by 2032 by eliminating or reducing tariffs in 96.6% of traded goods by value and will lead to savings of 4Bn euros ($4.75Bn) in duties for European companies, the EU said. The EU will cut tariffs on 99.5% of goods imported from India over seven years, with tariffs to be cut to zero on Indian marine goods, leather and textile products, chemicals, rubber, base metals and gems and jewellery, India's trade ministry said in a statement. India and the EU said agriculture-related items like soya, beef, sugar, rice and dairy have been kept out of the purview of the trade deal.
• The two-decade-long EU–India trade talks gained momentum after Washington imposed a 50% tariff on some Indian goods, and as U.S. allies pushed back against President Donald Trump’s tariff threats and his bid to take over Greenland. Canada's Prime Minister Mark Carney, in a speech that got a standing ovation in Davos last week, urged middle powers to come together to avoid becoming victimised. He is planning to visit India to sign deals on uranium, energy and minerals, after striking a deal recently with China.
• Before signing the deal with New Delhi, the EU agreed a pact with the South American bloc Mercosur, following deals last year with Indonesia, Mexico and Switzerland. During the same period, New Delhi finalised pacts with Britain, New Zealand and Oman.
• Trade between India and the EU stood at $136.5Bn in the fiscal year through March 2025, compared to $132Bn of trade between India and the U.S., and $128Bn between India and China. The formal signing of the India-EU deal would take place after legal vetting, expected to last five to six months, an Indian government official aware of the matter has said. The vetting process in the EU region could be subject to some setbacks, as in the case of Mercosur. EU lawmakers have voted to challenge the EU-Mercosur agreement in the bloc's top court.
• The move, passed with 334 votes in favour, 324 against, and 11 abstentions, was initiated by lawmakers concerned that the agreement’s structure and mechanisms violate EU principles. They also seek to clarify whether the deal's "rebalancing mechanism" restricts the EU’s sovereignty to pass future environmental and consumer health laws.

(Source: Reuters)

• European Central Bank policy fits the moment, and the economy has adapted well to volatility, but the bank must prepare for new shocks, possibly from Russia's military threat, ECB policymaker Gediminas Simkus noted.
• The ECB has achieved remarkable success last year, becoming the only major central bank to hit its inflation target, even as U.S. tariffs, war on the European Union's eastern border, Chinese goods dumping and food price surges kept uncertainty exceptionally high.
• Simkus argued political turbulence, which started with the pandemic in 2020 and also includes Russia's invasion of Ukraine, would likely persist and could easily upset the ECB's "good place" of inflation at target, growth at potential and interest rates in the neutral setting.
• Lithuania and fellow Baltic countries Estonia and Latvia, once part of the Soviet Union, have long expressed fears about possible Russian aggression, citing cyber-attacks, disinformation campaigns and incursions by drones and fighter jets. Simkus said the ECB should make sure cash distribution and payment systems are resilient to this sort of risk and that monetary policy is flexible enough.
• In the near term, the ECB's job is simple, Simkus argued, and policy will remain on hold at the next meeting on February 4, since small inflation fluctuations around 2% are normal. But there is little certainty beyond that, he cautioned.
• Financial markets see no interest rate change at all this year but anticipate some hikes next year on the premise that Germany's spending splurge will kick-start economic activity and its growth spurs the rest of the euro zone. Simkus, however, pushed back on the idea of giving signals beyond the immediate future.

(Source: Reuters)

• Woodcats International Limited (Woodcats) has officially opened its doors to investors through an Initial Public Offering (IPO) on the Jamaica Stock Exchange (JSE). The company is inviting applications for up to 833 million ordinary shares at J$0.90 per share, potentially raising J$750Mn. Of these, 283 million shares are available to the general public, while the remaining 550 million shares are reserved for strategic stakeholders: employees, key partners, and strategic investors.
• The offering is a mix of new and existing shares, with 416 million newly issued shares and 417 million existing shares coming from Derrimon Trading Company Limited, a major shareholder.
• The Company is a local manufacturer of wooden pallets, which are essential for the storage and transportation of goods across the country’s supply chain. In addition to wooden pallets, Woodcats produces wooden crates, shipping boxes, furniture, and lobster traps, and provides heat-treatment services that certify wood packaging for export in compliance with international phytosanitary standards.
• The Company also distributes plastic pallets and stretch wraps, and has expanded into creating by-products such as mulch, sawdust, and planters through its circular manufacturing model that ensures full use of its raw materials.
• NCB Capital Markets Limited is the Lead Broker for the transaction. The IPO is set to open on February 2, 2026, and close on February 20, 2026, although the company reserves the right to shorten or extend the subscription period. Investors may pre-apply for Woodcats shares on Goipo.jncb.com or visit woodcatsipo.com for more information.

(Source: JSE)

• Prime Minister Dr. the Most Honourable Andrew Holness recently underscored the Government of Jamaica’s commitment to pursuing deliberate and far-reaching financial sector and capital market reforms to support economic recovery, resilience, and long-term national development, as the country rebounds from the effects of Hurricane Melissa.
• Speaking at the Jamaica Stock Exchange’s 21st Regional Investments and Capital Markets Conference, held January 20-22, 2026, the Prime Minister said the reform agenda will be anchored in lower public debt, strong external reserves, and increasingly sophisticated domestic capital markets.
• Holness emphasised that Jamaica’s improved macroeconomic fundamentals require a modern regulatory framework, one that safeguards financial stability while enabling growth. The reform will be purposeful and responsible, aligning regulatory oversight with evolving risk profiles and financial innovation, while positioning capital markets to play a more dynamic role in national development.
• Building on this vision of deeper and more inclusive capital markets, Finance Minister Fayval Williams, at the same conference, announced that the JSE Micro Market is expected to be fully operational by the second quarter of this year. A move aimed at expanding access to financing for Micro, Small, and Medium-sized Enterprises (MSMEs) and broadening participation in Jamaica’s capital markets. This timeline aligns with commitments made during the Government of Jamaica’s 2025/2026 Annual Budget Debate in March 2025.
• The JSE Micro Market will target MSMEs seeking equity financing in the J$10Mn–J$50Mn range, enabling businesses to scale, expand operations, and contribute more meaningfully to economic growth. According to the Micro Market Steering Committee, the initiative could facilitate up to 25 listings within its first two years.
• Overall, the MSME sector remains a cornerstone of Jamaica’s economic structure, accounting for more than 90% of all enterprises and employing between 60% and 70% of the local workforce. Additionally, the sector is estimated to have contributed 44% of gross domestic product (GDP) and nearly 12% of total tax revenues last year.

(Sources: OPM, JIS, JSE)