The central bank of Jamaica left its key policy interest rate, the rate offered on overnight placements with Bank of Jamaica, steady at 2 percent on November 16th 2018, saying current monetary conditions are consistent with inflation returning to the centre of the target of 4 percent to 6 percent over the medium term. In September, inflation edged up to 4.3 percent from 3.9 percent in August. Policymakers added that risks to inflation are seen balanced. However, downside risks would include worsening in domestic demand conditions due to lower-than anticipated US GDP growth associated with an escalation in the international trade war and lower-than-expected oil prices. On the other hand, upside risks could be a stronger-than-anticipated expansionary response of domestic demand to the current accommodative monetary conditions; adverse weather conditions; and second-round effects of increases in regulated prices. Interest Rate in Jamaica averaged 12.16 percent from 1996 until 2018, reaching an all time high of 33 percent in October of 1996 and a record low of 2 percent in June of 2018.
Interest Rate in Jamaica is expected to be 2.00 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 2.00 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.