• Britain's recent increase in inflation could prove to be a longer-lasting plateau rather than a short-term hump, and the Bank of England should be careful about reducing interest rates, BoE monetary policymaker Megan Greene highlighted.
• British consumer price inflation was 3.4% in May - well above its 2% target - and the BoE last week forecast it would rise to 3.7% by September and remain around 3.5% for the rest of the year.
• Greene, who voted to keep borrowing costs on hold at the most recent meeting of the BoE's Monetary Policy Committee, said conflicting signals from economic data meant she was in no hurry to resume voting for rate cuts.
• "Noisy data means that it will take longer for me to take comfort from recent disinflationary trends," she said. "Given the period of elevated inflation through which we have just come, I think price stability is the key priority." Greene said the BoE's message that it would take a "careful and gradual approach" to cutting rates was still warranted.
• The BoE wants banks to make greater use of its weekly repos for seven-day and six-month funds, and Greene highlighted the possibility for commercial banks to profit from differences between the BoE's and other central banks' reserve systems. "Financial arbitrage opportunities present incentives for banks to participate in our facilities, enhancing rather than undermining our ability to maintain rate control. This is a feature, not a bug," she noted.
• The scale of these opportunities was "fairly limited", she added. Asked what this meant in cash terms - and whether it represented an extra cost for the BoE - Greene said she could not give details and that her focus as an MPC member was on the effective transmission of BoE rate changes to financial markets.

(Source: Reuters)

• Some Bank of Japan (BoJ) policymakers called for keeping interest rates steady for the time being due to uncertainty over the impact of U.S. tariffs on Japan's economy, a summary of opinions at the bank's June policy meeting.
• Others in the nine-member board said inflation was moving at higher-than-expected levels, with one saying the BoJ may need to raise interest rates "decisively" at some point, even if economic uncertainty remained high, the summary showed.
• At the June 16-17 meeting, the BpJ kept interest rates steady at 0.5% and decided to decelerate the pace of its balance sheet drawdown next year, signalling its preference to move cautiously in removing remnants of its massive stimulus.
• "Given high uncertainty, the BoJ should maintain accommodative financial conditions by keeping interest rates steady to support the economy," one member highlighted.
• Several opinions warned of the expected hit to Japan's fragile economy from sweeping U.S. tariffs
• Meanwhile, others saw rising inflationary pressure in Japan, driven in part by surging prices of the country's staple rice, with some saying consumer inflation was accelerating more than expected.

(Source: Reuters)

• Driven by reduced services exports and increased demand for imports by Jamaican consumers and businesses, Jamaica’s current account surplus is expected to narrow from 3.3% of GDP in 2024 to 1.6% of GDP in 2025, according to Fitch Solutions. However, despite these headwinds, Jamaica’s expected surplus in 2025 will mark the third consecutive year of a current account surplus, reflecting the continued relative strength of Jamaica’s tourism sector, strong reported bauxite production and exports, and resilient remittance inflows.
• While Fitch expects some softening of remittances in 2025 due to a sluggish United States (U.S.) growth outlook, inflows have remained resilient in the first quarter of 2025 (Q1 2025), supporting Jamaica’s large secondary income account surplus, which accounted for 16.8% of GDP in 2024, and is projected at 15.5% of GDP in 2025. According to the most recent data available (Jan.-Feb. 2025) net remittances have increased by 2.9% relative to the previous period in 2024.
• In line with the declining levels of inbound tourism expected in 2025; Jamaica’s services exports are expected to fall from 25.8% of GDP in 2024 to 24.0% in 2025. However, given the reported strength in bauxite production and exports, goods exports will see marginal increases, from 9.2% of GDP in 2024 to 9.8% of GDP in 2025, supporting Jamaica’s trade balance. Additionally, with oil and energy accounting for almost 20% of total imports in 2024, forecasted decreases in oil prices will positively impact Jamaica’s terms of trade and overall trade balance.
• Mirroring the current account surplus in 2024, Jamaica’s financial account showed net financial outflows, driven by outbound portfolio investment, other investment, and the accumulation of foreign reserve assets. However, FDI inflows in 2024 fell well short of the levels seen in 2023, declining 57% y-o-y, with 2025 unlikely to see a rebound, due to dampened external demand and increased economic uncertainty from U.S. trade policy.
• That being said, risks are tilted to the downside, with sharper-than-expected reductions in remittances and inbound tourism potentially narrowing the current account by a greater degree than anticipated. A continued softening of external growth and economic activity in the U.S. also presents a significant downside risk to the outlook, with decreased demand for Jamaican goods and services exports a headwind to growth, net exports, and the current account surplus.
• In terms of the current Middle East Conflict, higher oil prices could dampen trade and growth prospects, which would negatively impact Jamaica’s trade balance. However, the ceasefire between Israel and Iran and the de-escalation of the conflict, in turn, saw a collapse in oil prices, with Brent Crude trading back around US$69 per barrel (/bbl), and Fitch believes oil prices will remain in the range of US$70–80/bbl.
• That said, the outlook is mixed and is heavily dependent on the event of a re-escalation in tensions. Any sustained move above US$90/bbl would begin to weigh on global activity, while for a surge to US$120–150/bbl, global inflation could rise by 1.2–1.8 percentage points (pp) and global growth could be reduced by at least 0.2–0.3pp, likely tipping the global economy into a mild recession.

(Source: Fitch Connect)

• On June 20, 2024, Tropical Battery Company Limited (TROPICAL) advised that, following requests from several institutional and other prospective investors for additional time to complete their internal investment processes, the Company has elected to extend the Closing Date of its Additional Public Offering (APO).
• After consulting with its lead brokers, NCB Capital Markets Limited and Sagicor Investments Jamaica Limited, TROPICAL has approved a further extension of the APO Closing Date from Friday, June 20, 2025, to on or before Friday, July 4, 2025, at 4:30 PM.
• This extension underscores TROPICAL’s commitment to enabling broad-based investor access and ensuring that all interested parties have adequate time to participate in this significant capital-raising initiative.
• Tropical is seeking to raise capital through an APO. The company is offering 954.54Mn new ordinary shares, with the possibility of increasing the offering by an additional 168.44Mn shares, for a maximum total offer size of 1.12Bn new ordinary shares. The APO price is J$1.87 per share.
• At market close on Monday, Tropical’s stock price was J$2.03, down 23.64% since the start of the year, and 8.56% above its APO offer price. At its current price, the company trades at a trailing P/B of 2.76x, below the 3.75x average for the Junior Market Distribution Sector.

(Sources: JSE and NCBCM Research)

• The Bahamas Ministry of Tourism is making a strong push in Canada this summer, hosting key trade and media events in Montreal and Toronto to deepen partnerships and capitalise on growing interest from Canadian travellers seeking fresh, accessible, and authentic vacation options beyond traditional markets.
• Leading the mission, Deputy Prime Minister and Minister of Tourism, Investments & Aviation, the Honourable I. Chester Cooper, will spearhead high-level engagements with airline partners, tour operators, travel advisors, and media. The delegation also includes Director General Latia Duncombe and other senior tourism officials.
• Central to this growth strategy is the Ministry’s success in expanding air connectivity with Canada. Earlier this year, the Ministry announced significant boosts in flights from major Canadian cities to The Bahamas.
• Minister Cooper explained that “Canadian travellers are changing their travel habits, and with expanded airlift and improved accessibility, The Bahamas is well-positioned to capture this demand. This mission is focused on growing our visitor numbers and strengthening partnerships that deliver real economic benefits for our tourism industry.” He further explained that “Airline partners like Air Canada and Sunwing are responding to strong Canadian demand with expanded services. These improvements in accessibility directly enhance our ability to grow tourism business, bring new visitors, and create economic opportunities across The Bahamas.”
• New nonstop services from Ottawa and Halifax to Nassau will launch this winter, while existing routes from Toronto and Montreal to Nassau and Grand Bahama have been extended or made year-round. These increased flight options make The Bahamas more accessible than ever, supporting year-round travel to 16 unique island destinations.

(Source: Eyewitness News)

• Iran launched a missile attack on an American air base in Qatar on Monday that caused no injuries, and U.S. President Donald Trump dismissed it as a "weak response" to U.S. attacks while urging Iran and Israel to make peace after 11 days of mutual hostilities.
• The attack on Al Udeid Air Base in neighbouring Qatar threatened to widen a conflict that began on June 13 with an Israeli strike on Iran targeting its nuclear programme and ballistic missiles. Iran had threatened to retaliate against the United States after U.S. bombers dropped 30,000-pound bunker-busters on Iranian underground nuclear facilities over the weekend, joining Israel's air war against Iran, and Trump had raised the possibility of the Iranian government being toppled.
• Iran gave advance notice to the U.S. via diplomatic channels hours ahead of the attack, as well as to Qatari authorities. Trump seized on that as a positive sign. "I want to thank Iran for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured," Trump wrote on his Truth Social media site. "Perhaps Iran can now proceed to Peace and Harmony in the Region, and I will enthusiastically encourage Israel to do the same."
• The attack strained Iran's relationship with its Arab neighbours, Qatar condemned it, as did Bahrain, the United Arab Emirates, Saudi Arabia, Kuwait, and Iraq.

(Source: Reuters)

• U.S. President Donald Trump and his allies in the Senate face a political free-for-all over the passage of his sweeping tax-cut and spending legislation, which Republican congressional leaders hope to enact in the coming days, despite growing resistance from different party factions.
• Senate Majority Leader John Thune, House Speaker Mike Johnson, and administration officials are pressing Republican lawmakers to pass the One Big Beautiful Bill Act so Trump can sign it into law before the July 4 U.S. Independence Day holiday.
• But hardline Republicans have redoubled their push for additional spending cuts after an official forecast that the bill would add at least $2.8 trillion to the $36.2 trillion U.S. debt. Other lawmakers, looking to minimise the impact of cuts on social programs, including Medicaid, have also voiced adamant opposition to the bill's language.
• Trump is expected to turn up the heat on senators this week, according to Republican lawmakers who view him as "the closer." Lawmakers are still waiting for the Senate parliamentarian, the chamber's nonpartisan gatekeeper, to decide whether the legislation qualifies for the privileged status needed to circumvent Democrats and the 60-vote Senate filibuster and pass it with only 51 votes.
• Some Republicans are pushing back on Thune's schedule in hopes of gaining more time to negotiate bigger savings. The Wisconsin Republican said he is coordinating with fellow hardline Senators Mike Lee and Rick Scott, who want to glean additional savings from green tax credits and the Medicaid healthcare program for lower-income Americans, respectively.
• The legislation has yet to pass muster with the Senate parliamentarian, a nonpartisan referee who has said Republican efforts to restrict food assistance, curtail the ability of judges to block government policies, slash funding for financial watchdogs, and reverse Biden vehicle policy, violate budgetary rule.

(Source: Reuters)

• The private sector is being urged to lead the charge in boosting productivity, driving growth, and accelerating national development.
• This was the charge from Minister without Portfolio in the Office of the Prime Minister with Responsibility for Efficiency, Innovation and Digital Transformation, Senator the Hon. Ambassador Audrey Marks. She was speaking during the Jamaica Chamber of Commerce (JCC) 40^thAnnual Awards Banquet on June 12, at The Jamaica Pegasus hotel in New Kingston. The banquet was held under the theme ‘Shaping the Future: Driving Productivity, Championing Equity, Inspiring Entrepreneurship’.
• Senator Marks noted that productivity challenges remain a “stubborn barrier” to unlocking the country’s full potential. The Minister explained that, over the past decade, the Government has prioritised debt reduction, inflation control and broader socioeconomic stabilisation—creating an enabling environment for businesses to operate and thrive.
• She said these efforts have yielded tangible results, including a debt-to-GDP ratio of 68.7%, inflation falling within the Bank of Jamaica’s four to six per cent target range, and a 43.3% decline in murders between January and May 2025, compared to the same period last year.
• “To achieve that growth, the Government will now have to pivot from stabilisation to GDP growth strategies. We must boost productivity, not by working harder but by working smarter. It’s about integrating technology, upskilling our workforce, streamlining operations, and investing in innovation. This is where the private sector can lead the charge,” the Minister outlined.
• Senator Marks noted that the second pillar of the theme, ‘championing equity’, challenges stakeholders to confront the entrenched issue of unequal access to opportunities.
• The Minister also noted that the JCC has spearheaded several initiatives over the years to bridge opportunity gaps for citizens and entrepreneurs – from redevelopment projects in downtown Kingston to partnerships aimed at tackling crime and advancing technology.

(Source: JIS)

• The Government of Guyana and the CARICOM Development Fund (CDF) on Tuesday signed a US$18Mn financing agreement to kickstart the Agricultural and Infrastructural Development Programme (AIDP). The AIDP is expected to see over 4,300 farmers across the ten regions of Guyana benefitting, with 40% of the beneficiaries being women and youth.
• The agreement was signed at the Ministry of Finance in the presence of representatives of the Ministries of Agriculture and Finance. The programme will allow for a further boost to Guyana’s agriculture sector, supporting compliance with food safety, sanitary and phytosanitary standards in the sector.
• Ashni Singh, Senior Minister responsible for Finance and the Public Service, expressed gratitude to the CDF for its longstanding support. He also outlined various agricultural projects supported by the CDF over the years, including farm-to-market roads, which align with the CARICOM Region’s food security agenda.
• The AIDP will contribute to the Government’s broader diversification strategy, including further development of agriculture, one of the country’s main non-oil sectors.
• With most agriculture concentrated on the coast, facing challenges such as climate change risks and reduced availability of water and suitable land, Guyana’s Ministry of Agriculture aims to increase production and value addition in selected commodities. Through these and other projects, the Ministry expects to be in a stronger position to propose policies and investments that generate the highest return for the country, in line with Guyana’s National Strategy for Agriculture (2020 – 2030).

(Source: Kaieteur News)

• President Luis Abinader announced that the Dominican Republic’s economic dynamism and export growth result from creating favourable conditions and fostering an export culture focused on education, innovation, and sustainability.
• Speaking at the Third Presidential Meeting on the Progress of the National Export Promotion Plan (PNFE) 2020–2030, he shared that exports rose 23.6% between 2020 and 2024, reaching US$63.3Bn, with a record US$13.87Bn in 2024 alone.
• Abinader highlighted that export momentum continues into 2025, with US$5.64Bn exported from January to May. This represented an 8.6% increase compared to the previous year. Growth spans traditional markets like the United States, which saw a US$436Bn increase, and emerging markets in Asia (such as Japan) and the Caribbean, including Cuba, Guyana, and the Turks and Caicos Islands. He emphasised that coordinated efforts are essential to sustain exports as a key driver of national development.
• Biviana Riveiro, executive director of ProDominicana¹, underscored steady export growth across strategic markets, including the U.S., U.K., Cuba, France, Jamaica, Guyana, Mexico, and Turkey.
• She highlighted significant increases in high-value goods exports since 2020, with medical instruments rising 74% and electrical products up 15%. Riveiro noted that industrial exports have surpassed US$2.9Bn and projected exports could reach US$35.0Bn by 2036.

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¹ProDominicana is the Dominican Republic’s official agency for promoting exports and attracting foreign investment to boost the country's economic development.

(Source: Dominican Today)