The central bank of Jamaica raised its benchmark interest rate by 50bps to 2.0% on its November 16th meeting. The policymaker said that inflation accelerated to 8.2% in September significantly above the central bank’s target of 4 - 6 percent, on the back of an increase in commodity and shipping prices. In order to limit the second-order effects and to bring inflation back to the target, the monetary authority decided unanimously to hike the interest rate by 50 bps and to maintain other measures to contain Jamaican dollar liquidity expansion, so movements in the exchange rate do not threaten the inflation target. Also, the policymaker said that further rates hike would be welcome, if necessary, to curb inflation expectations and bring inflation sustainably to the target. Inflation is projected to average 5.5 percent to 6.5 percent over the next two years, which is higher when compared to the average inflation rate of 5.0 percent over the past two years. source: Bank of Jamaica

Interest Rate in Jamaica averaged 10.90 percent from 1996 until 2021, reaching an all time high of 33 percent in October of 1996 and a record low of 0.50 percent in August of 2019. This page provides - Jamaica Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Jamaica Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on November of 2021.

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. In the long-term, the Jamaica Interest Rate is projected to trend around 2.50 percent in 2022 and 2.00 percent in 2023, according to our econometric models.

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Jamaica Interest Rate


Calendar GMT Actual Previous Consensus TEForecast
2021-08-19 09:30 PM 0.5% 0.5% 0.5%
2021-09-30 09:30 PM 1.5% 0.5% 0.75%
2021-11-16 09:30 PM 2% 1.5% 2%
2021-12-20 09:30 PM 2%


Related Last Previous Unit Reference
Interest Rate 2.00 1.50 percent Nov/21
Foreign Exchange Reserves 4120.94 4062.38 USD Million Sep/21
Money Supply M3 1003522.70 1001774.20 JMD Million Aug/21
Money Supply M2 760801.10 761669.30 JMD Million Aug/21
Money Supply M1 369356.30 370924.50 JMD Million Aug/21
Central Bank Balance Sheet 1133216.00 1070095.00 JMD Million Aug/21

News Stream
Jamaica Hikes Interest Rate by 50bps
The central bank of Jamaica raised its benchmark interest rate by 50bps to 2.0% on its November 16th meeting. The policymaker said that inflation accelerated to 8.2% in September significantly above the central bank’s target of 4 - 6 percent, on the back of an increase in commodity and shipping prices. In order to limit the second-order effects and to bring inflation back to the target, the monetary authority decided unanimously to hike the interest rate by 50 bps and to maintain other measures to contain Jamaican dollar liquidity expansion, so movements in the exchange rate do not threaten the inflation target. Also, the policymaker said that further rates hike would be welcome, if necessary, to curb inflation expectations and bring inflation sustainably to the target. Inflation is projected to average 5.5 percent to 6.5 percent over the next two years, which is higher when compared to the average inflation rate of 5.0 percent over the past two years.
2021-11-16
Jamaica Hikes Interest Rate by 100bps
The central bank of Jamaica raised its benchmark interest rate by 100bps to 1.5% on September 30th, saying that inflation had breached the upper limit of the Bank’s target range in August and that the risks of inflation continuing to breach the target over the next year have intensified. Inflation was projected in August 2021 to average 5.5 to 6.5% over the next two years, which was higher when compared to the average inflation rate of 5.0 percent over the past two years. Inflation was projected to breach the upper limit of the Bank’s target range over the next twelve months. Conditional on the gradual tightening of monetary conditions, inflation was projected to remain at 5% over the medium term.
2021-09-30
Jamaica Signals Interest Rate Hike in September
The central bank of Jamaica kept the benchmark interest rate at the record low of 0.5% in August 2021 but agreed to consider commencing a tightening of monetary policy at its next meeting in September 2021. The Committee also decided to implement other measures aimed at moderating inflation expectations, including the containment of Jamaican dollar liquidity expansion. Policymakers noted that recent significant increases in international commodity prices will cause inflation in Jamaica to temporarily breach the upper limit of the Bank’s target range from as early as the September 2021 quarter. Inflation is projected to average 5½ to 6½ per cent over the next two years, which is higher when compared to an average inflation rate of 5.0 per cent over the past two years and an upward revision relative to the previous forecast.
2021-08-19

Jamaica Interest Rate
In Jamaica, the Bank of Jamaica engages in open market operations by offering 30-day instruments. Since July 1st, 2017, the Bank changed the benchmark interest rate to the rate paid on overnight deposits held by deposit-taking institutions (“DTIs”) from the rate paid on 30-day certificates of deposit.