Monetary Policy Report – November 2024

Explore the Central Bank’s latest insights on Trinidad and Tobago’s economic performance, inflation trends, and monetary policy measures. This report provides a comprehensive overview of key economic developments shaping the country’s financial landscape.

Monetary Policy Report Highlights

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Global Economic Stability
Though risks, such as subdued growth, heightened political risks, ongoing geopolitical conflicts and trade tensions, threaten the global economic outlook, global economic activity is stabilising and global inflation has decelerated.
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Domestic Economic Growth
Domestically, economic activity improved and inflation eased. According to data published by the Central Statistical Office, real gross domestic product (GDP) expanded in the first quarter of 2024.
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Reserve Requirement Reduction
Effective July 24, 2024, the primary reserve requirement of commercial banks was lowered from 14 per cent to 10 per cent to bolster commercial bank liquidity.
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Repo Rate Maintained
The Central Bank of Trinidad and Tobago, in its September 2024 Monetary Policy Committee meeting, maintained the Repo rate at 3.50 per cent.
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Domestic Economy
The domestic economy showed signs of a recovery in 2022 after two years of economic contraction. Unemployment rates declined, creating room for increased GDP levels. Risks related to sovereign concentration remain relevant but do not pose near-term risks to financial stability.
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Central Bank's Long-term Financial Stability Initiatives
In 2022, domestic financial sector remained resilient throughout the year. Overall, institution’s capital and liquidity buffers were broadly stable, with improvements in asset quality and profitability ratios in some sectors.
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