The Bank of Jamaica has conceded that borrowers faced significant pressure during the four-year period when its benchmark interest rate climbed from 0.5% to 7% to curb inflation triggered by COVID-19 and the war in Ukraine.
But, its latest credit conditions survey shows an easing in credit during the December 2024 quarter—ending 11 straight quarters of tightening.
As a result, the weighted average loan rate dipped slightly from 12.15% in March 2024 to 12.11% in March 2025.
Business loan rates also slipped, from 11.6% to 11.4%.
But not all rates moved down. Personal loans, mortgages, and instalment credit became more expensive, even as rates paid by the central government fell sharply from 19.6% to 13.1%.
Foreign currency loan rates also declined—from 8.3% to 7.8% over the last year.
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