00:00The central bank has kept the repo rate unchanged at 3.5 percent, saying the local economy continues to face
00:07a combination of global uncertainty and slowing domestic activity.
00:13The bank says the ongoing conflict in the Middle East has disrupted energy exports and global shipping routes, driving up
00:21oil prices, freight costs and inflation worldwide.
00:24As a result, major central banks have either raised interest rates or signaled that rate cuts are unlikely in the
00:32near term.
00:33The bank says, quote, global economic conditions have become less favorable and highly uncertain due in part to falling growth
00:41prospects, persistent geopolitical tensions, elevated inflation and tightening monetary conditions, end quote.
00:48Despite those international pressures, the central bank says inflation in Trinidad and Tobago remains subdued.
00:56Headline inflation, it says, eased to just 0.3 percent in May, while food inflation fell to 0.2 percent,
01:04suggesting higher global prices have yet to significantly filter through to consumers.
01:09Economic indicators, however, point to a moderation in growth.
01:14The bank says reduced natural gas availability has slowed activity in the energy sector, while uncertainty has weighed on business
01:22investment.
01:23Private sector lending has also weakened with business credit recording the sharpest slowdown.
01:29The central bank says, quote, on the domestic front, the committee considered the moderation of economic activity slowing private sector
01:37credit expansion and low inflation conditions, end quote.
01:41Even with slower economic activity, labor market conditions have improved.
01:46The unemployment rate declined to 4.3 percent in the final quarter of 2025, and that's down from 5.5
01:53percent a year earlier.
01:55Taking the overall picture into account, the monetary policy committee says it found no need to adjust borrowing costs at
02:02this time.
02:03The bank says, quote, taking all factors into account, the committee decided to maintain the repo rate at its current
02:09level of 3.5 percent.
02:11The central bank will continue to monitor international and domestic developments and will take further actions as necessary, end quote.
02:19The bank's next monetary policy announcement is scheduled for September 25, 2026.
02:25Arvishita Wari Ruknarein, TV6 News.
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