Central Bank of Trinidad and Tobago -MONETARY POLICY

Monetary Policy refers to those actions and decisions undertaken by the Bank to create appropriate monetary conditions in line with the economic objectives of the country.

Objectives of Monetary Policy
The Central Bank conducts monetary policy with the objective of maintaining a low and stable rate of inflation, an orderly foreign exchange market, exchange rate stability and an adequate level of foreign exchange reserves. learn more »

Instruments
The Central Bank uses a range of tools to effect monetary policy including:

The Reserve Requirement
Open Market Operations
The Repo Rate

Prior to 1993, the Central Bank utilized less market-based tools for conducting monetary policy. These included (a) the statutory reserve requirement; (b) the rediscount rate; (c) selective credit controls; (d) interest rate controls; and (e) exchange controls. learn more »