Repo rate stays at 4.75%

In making the announcement, the Central Bank said that economic activity in Trinidad and Tobago remained subdued in the first quarter of 2017. It said that energy sector output had not yet begun to recover strongly, in particular oil and natural gas production. However, exploratory activity was up, with higher rig days and depth drilled being reported, and that was expected to boost the energy sector going forward. It added that available indicators on sales, production and sectoral credit point to continued weakness in construction and distribution into the second quarter. The bank added that inflationary pessures had been well contained with the overall inflation rate standing at 1.7 per cent (yearon- year) in May 2017; that both food and core inflation remained in the single digits at 1.8 per cent and liquidity in the banking system remained comfortable with excess reserves averaging at about $3.1 billion between May and July 2017.

However, the bank said that there was evidence of some tightening in the context of rising Government domestic financing. It added that credit expansion was muted and that in May 2017 credit to businesses granted by the consolidated financial system increased marginally by 0.3 per cent while loans to consumers declined to 4.5 per cent and lending for real estate mortgages remained stable at 4.4 per cent.