Bank of Jamaica to Cut Interest Rates Further

• Fitch is expecting the Bank of Jamaica to lower its benchmark policy rate by an additional 25 basis points at its May meeting, as inflation remains below target.
• Over the longer term, it is anticipated that rising energy and food costs will cause inflation to pick up, leading policymakers to raise rates in 2020. 
• As a result, Fitch has lowered its inflation forecast over the longer term as reforms to the BOJ have seemingly caused inflation expectations to be firmly anchored. In particular, the rating agency has lowered its long-term average forecast (2021-2028) for Jamaican inflation to 5.50%, from 6.00% 

(Source: Fitch)