جامائیکا - نرخ بهره

The central bank of Jamaica kept its key policy interest rate steady at 0.50 percent at its November 18th 2019 meeting. Policymakers said that the decision was based on the bank’s assessment that monetary conditions are appropriate to support the achievement of the inflation target of 4.0 percent to 6.0 percent over the next 4 to 8 quarters. The Committee noted that the annual inflation rate fell to 3.3% in October from 3.4 percent in September, falling for the third month and expected to return to the middle of the target in the next months, given expectations for higher food prices in the context of hot, dry weather conditions. The Committee added that will continue to monitor the impact of monetary loosening on credit expansion, investment and economic growth; and will be ready to implement additional measures to meet the inflation target if necessary.

The central bank of Jamaica kept its key policy interest rate steady at 0.50 percent on September 30th 2019, after cutting borrowing costs by 25 bps in the previous meeting to leave the key rate at its lowest level on record. Policymakers said that the decision was based on the bank’s assessment that monetary conditions are appropriate to support the achievement of the inflation target of 4.0 percent to 6.0 percent over the next 4 to 8 quarters. The Committee noted that the annual inflation rate fell to 4.1% in August from 4.3 percent in July and it is projected to slow to 3.7% at September before accelerating towards the middle of the target in the December 2019 quarter, given expectations for higher food prices in the context of hot, dry weather conditions. The Committee added that will continue to monitor the impact of monetary loosening on credit expansion, investment and economic growth; and will be ready to implement additional measures to meet the inflation target if necessary.

The central bank of Jamaica trimmed its key policy interest rate by 25 bps to 0.50 percent at its August meeting. It is the fourth rate cut so far this year bringing borrowing cost to a record low. Policymakers said that the decision aims to stimulate a faster expansion in private sector credit, which should lead to higher economic activity, consistent with the inflation target of 4 percent to 6 percent. The Committee added that the inflation is expected to average 4.3 percent over the next eight quarters within the target range, but in the absence of a policy response, inflation is projected to fall below the lower limit of the target at various points over this period. Over the medium term, inflation outlook will gradually approach the midpoint of the Bank’s target, albeit at a slower pace than previously expected, amid low domestic demand conditions relative to the economy’s capacity, softer growth among Jamaica’s main trading partners and declines in international commodity prices.

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.

The central bank of Jamaica lowered its key policy interest rate by 50 bps to 0.75 percent at its May meeting, after trimming it by 25 bps in the previous meeting. It is the third rate cut so far this year bringing borrowing cost to a record low. 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. The Bank also narrowed the width of the interest rate corridor from 300 bps to 200 bps.

The central bank of Jamaica cut its key policy interest rate by 25 bps to 1.25 percent on March 27th 2019, after trimming it by 25 bps in the previous meeting. It is the second rate cut so far this year bringing borrowing cost to a record low. Policymakers said that the decision is aimed at supporting inflation returning and remaining on the target range (4 percent - 6 percent) by December 2020. The Committee noted that the risks to the inflation outlook have shifted to the downside, mainly due to expectations for a lower-than-projected energy cost and agricultural prices drive by favourable weather. Policymakers added that the rate cut is going to stimulate a faster expansion in private sector credit which should lead to higher economic activity.