Macroeconomic Forecast Trinidad & Tobago

October 2006 | Macroeconomic Forecasts

Inflation hit 9.6% y-o-y in September, with the prime lending rate heading for 12.0% in late October. Following eight hikes to the repo rate in nine months, taking it to 8.0% at the end of Q306, the central bank has called a halt to its interest rate rises. Rate increases have been ineffective in keeping inflation down, thanks to the government's expansionary budget stance - thus the focus of monetary policy will now shift to more aggressive liquidity absorption. But it is unclear whether this new policy can be effective in the absence of any significant fiscal retrenchment by the

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