The Bank of Jamaica (BOJ) is projecting a five per cent rate of inflation for the coming year.
In its recently-released Quarterly Monetary Policy Report, the central bank outlined that over the next eight quarters, inflation is projected to average five per cent (lower than the average rate of 5.3 per cent previously projected).
Meanwhile, real GDP is still projected to contract between 10 and 12 per cent for FY2020/21, but recover partially in the next year, the BOJ stated in the new report which is for the quarter ended December 31, 2020.
The BOJ said it anticipates that inflation will rise in the range four to six per cent at March 2021, decelerate in the range of four to five per cent at June 2021 and then accelerate in the range 4.5 to 5.5 per cent at September 2021.
Inflation is projected to remain within the bank’s inflation target of four per cent to six per cent over the medium-term.