Central Bank drops interest rates

WITH immediate effect, the Central Bank of Trinidad and Tobago is reducing its operating interest rates by 25 basis points. The Central Bank “Repo” which is the rate at which it provides overnight credit to commercial banks, will therefore be set at five percent. According to the Central Bank, the discount rate will also fall from 7.25 percent to seven percent and the special deposit rate from 3.25 to three percent. It said the decision to reduce the rates has been taken against the background of a contraction in domestic credit, subdued inflationary pressures and the protracted delay in global economic recovery which continues to affect demand for exports.