The Central Bank of Trinidad and Tobago announced on Friday that it has decided to keep the Repo Rate at its current level of 3.50%. The reason for the decision was attributed to low inflation, strong credit conditions, and steady economic growth.
In making its decision to keep the interest rate at 3.50%, the Central Bank of Trinidad and Tobago considered global and domestic conditions. Despite global conflicts, the world economy remains stable in 2024, with global activity estimated to expand by 3.2%. The US Federal Reserve cut interest rates for the third time this year in December. Major central banks are easing monetary policies as inflation targets improve.
Trinidad and Tobago’s economy grew by 1.5% in the first part of 2024, with businesses outside of oil and gas performing well, even though the energy sector faced some challenges. Unemployment fell to 4.8% from the previous quarter, and inflation stayed relatively low at 0.5%. Banks comfortably held $6.4 billion in excess reserves in early December.
In its Monetary Policy Report released on Friday, the Central Bank said that it will continue to monitor global and local events and take action if needed.