The central bank of Jamaica left its key policy interest rate at 0.75 percent at its June meeting, after trimming it by 50 bps in the previous meeting. Policymakers said that the decision is consistent with the inflation target range (4 percent – 6 percent) and stimulates the private sector credit which should led to a stronger economic activity. The Committee noted that the risks to the inflation outlook are assessed to be balanced. Policymakers added that the inflation rate is expected to increase towards the mid-point of the target by the March 2020 quarter and will decline towards the bottom of the target in the period after the March 2020 quarter. Interest Rate in Jamaica averaged 11.90 percent from 1996 until 2019, reaching an all time high of 33 percent in October of 1996 and a record low of 0.75 percent in May of 2019.
Interest Rate in Jamaica is expected to be 0.75 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 0.50 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.