News: Trinidad central bank moves to fight inflation
(CNN 29/03/2006) Port of Spain - The Central Bank of Trinidad and Tobago has decided to increase the 'Repo' rate by 25 basis points from 6.5 percent to 6.75 percent with effect from Tuesday March 28, 2006.
An official statement from the Central Bank says this decision comes against the background of what is being termed by financial and economic experts as "persistent inflationary pressures," the continued sharp growth in private sector credit and the narrowing of the differential between TT and US dollar, along with short-term interest rates as US rates continue their upward climb.
The bank says the latest available data on prices released by the Trinidad Central Statistical Office indicate that headline inflation measured 6.5 percent year-on-year to February 2006, down from 7.04 per cent in January, but still outside of the Bank's target range of 4–5 per cent. It says core inflation held steady at 2.5 per cent.
In an effort to deal with the inflationary trend the bank says it has intensified its efforts at absorbing liquidity, through the use of longer term debt instruments. It adds that the bank will continue to keep monetary conditions under close review. The next 'Repo' rate announcement is scheduled for April 28, 2006.
An official statement from the Central Bank says this decision comes against the background of what is being termed by financial and economic experts as "persistent inflationary pressures," the continued sharp growth in private sector credit and the narrowing of the differential between TT and US dollar, along with short-term interest rates as US rates continue their upward climb.
The bank says the latest available data on prices released by the Trinidad Central Statistical Office indicate that headline inflation measured 6.5 percent year-on-year to February 2006, down from 7.04 per cent in January, but still outside of the Bank's target range of 4–5 per cent. It says core inflation held steady at 2.5 per cent.
In an effort to deal with the inflationary trend the bank says it has intensified its efforts at absorbing liquidity, through the use of longer term debt instruments. It adds that the bank will continue to keep monetary conditions under close review. The next 'Repo' rate announcement is scheduled for April 28, 2006.
posted by InCar Group Press Room at 18:03
0 Comments:
Post a Comment
<< Home