Macroeconomic Forecast Trinidad & Tobago

BMI View: T&T's monetary authorities maintained the islands' repo rate at 5.00% for the third consecutive month in March, supporting our view that the central bank will maintain the its current loose monetary stance in a bid to reignite the islands' faltering economy. Going forward, rising price pressures resulting from last year's monetary stimulus measures are likely to increase calls for monetary tightening. However, with the recently issued government bond draining some liquidity from the system, we hold to our moderate forecast for 150 basis points of hikes by end-2010.

To read the full article, please choose one of the following options: