The central bank of Jamaica cut its key policy interest rate by 25 bps to 1.50 percent on February 20th 2019 after trimming it by 25 bps in the previous meeting. Policymakers noted that the annual inflation rate fell to 2.4 percent in December from 4.1 percent in November, lower than the target range of 4.0 percent to 6.0 percent, and it is expected to declined below the target t at various points over the next eight quarters due to low core inflation and large seasonal changes in agricultural prices. The Committee said that the decision aimed at increasing the rate of expansion in private sector credit and is not aimed at influencing the exchange rate. Interest Rate in Jamaica averaged 12.05 percent from 1996 until 2019, reaching an all time high of 33 percent in October of 1996 and a record low of 1.50 percent in February of 2019.
Interest Rate in Jamaica is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Jamaica to stand at 1.75 in 12 months time. In the long-term, the Jamaica Interest Rate is projected to trend around 2.50 percent in 2020, according to our econometric models.