Repo rate holds

The Central Bank’s Monetary Policy Committee (MPC) has chosen to maintain the repo rate at 4.75 percent, given “the very narrow TT-US differential and the prospect of US rate rises at the end of the year.”

Announcing the decision coming out of the MPC’s September meeting, the Central Bank of Trinidad and Tobago (CBTT) yesterday said the MPC also “observed that the nascent signs of recovery in the energy sector had not yet translated into a boost to other sectors.”

In addition, “inflationary pressures were currently not substantial. In balancing these considerations, the MPC decided to hold the repo rate at its current level of 4.75 percent.”

At its September 2017 meeting, the MPC took note of the improvement in the global economy, the steps towards normalisation of monetary policy in several advanced economies and domestic developments and near term prospects.

The economic environment in both advanced and emerging economies continues to improve, with generally positive growth being recorded and inflation approaching target ranges. Within this context, authorities in some advanced nations have begun to more actively address monetary policy normalisation.

Here in TT, “the economy remains growth-challenged at present but early signs of improvement have appeared in the energy sector, as exploration activity picked up in the third quarter and output of natural gas is expected to rise with the coming on-stream of the Juniper project.”