PORT OF SPAIN, Trinidad, CMC – The Central Financial institution of Trinidad and Tobago (CBTT) Friday mentioned that gross home product (GDP0 grew by three % within the first quarter of this 12 months.
In its Financial Coverage Assertion, the financial institution mentioned that the information from the Central Statistical Workplace (CSO) displays a considerable growth within the non-energy sector (4.2 %) accompanied by marginal progress within the power sector (0.3 %).
Based on the CBTT, within the second quarter of 2023, indicators monitored by it level to a gentle rise in exercise in main non-energy sectors, together with transportation and storage, wholesale and retail commerce, excluding power, electrical energy, and water, excluding gasoline and building.
The CBTT mentioned the unemployment charge elevated to 4.9 % within the first quarter of 2023 from 4.7 % within the fourth quarter of 2022. It mentioned headline inflation eased additional in August 2023 to 4.1 % year-on-year, down from 4.7 % recorded in July 2023.
The deceleration in headline inflation got here from slower worth actions in meals as core inflation remained unchanged. Meals inflation slowed to five.6 %, whereas core inflation, which excludes meals objects, remained at 3.7 %.
The CBTT mentioned that the regular progress momentum in credit score continued within the second quarter of 2023 as total monetary system credit score grew by 7.8 % within the 12 months to June 2023, up from 6.4 % in March 2023.
It mentioned the primary mortgage subcategories accelerated with enterprise lending to 7.3 %, shopper loans to eight.1 %, and actual property mortgage loans to six.3 %.
“Banking system liquidity remained elevated up to now for the 12 months, with industrial banks’ reserves on the Central Financial institution over required ranges reaching a every day common of TT$6.3 billion (One TT greenback=US$0.16 cents) by the top of August 2023.”
The Central Financial institution mentioned that the differential between short-term rates of interest in Trinidad and Tobago and the US narrowed as home charges elevated and the Fed paused its charge will increase.
It mentioned the differential on 3-month treasuries (TT/US) reached -464 foundation factors in August 2023 from -476 foundation factors in Might 2023. In the meantime, in the long term, the 10-year differential moved to +107 foundation factors from +153 foundation factors over the identical interval.
“In its deliberations on worldwide developments, the Financial Coverage Committee (MPC) famous the continued uncertainty on the worldwide inflation entrance and the impression that future financial tightening might have on the TT/US curiosity differential.
“The Committee thought-about that domestically, the buoyancy in non-public sector credit score, alongside the sustained deceleration in inflation, was serving to to foster a gentle revival of financial exercise with out demand pressures presently.”
It mentioned contemplating all components, the MPC agreed to carry the repo charge, the speed at which the industrial financial institution will repurchase the securities, at its present degree of three.50 %.
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