Reprinted from Caribbean Net News
caribbeannetnews.com

Trinidad Central Bank raises 'repo' rate

Saturday, August 26, 2006

by: Stephen Cummings
Caribbean Net News Trinidad and Tobago Correspondent
Email: stephen@caribbeannetnews.com

PORT OF SPAIN, Trinidad: The Trinidad and Tobago Central bank has again raised its REPO rate to 8 percent.

The latest inflation figures released by the Central Statistical Office in Trinidad indicate that headline inflation measured 8.6 percent on a year-on-year basis up to July, roughly the same rate reported last month.

It is also been noted that there continues to be increases in the price of fruit, vegetables as well as fish, these being the main drivers of the rise in the cost of food.

Central bank officials say the sustained increase in the "Repo" rate is continuing to impact on short-term interest rates and private sector credit.

Over the last months inflationary pressures, have gripped the Trinidad economy causing financial experts and economists to warn against the country reaching what they term a "boom-bust economy".

The Bank has raised its overnight 'Repo' rate by 25 basis points to 7.75 per cent with effect from Friday August 25, 2006.

The Bank's next 'Repo' rate announcement will be made on September 29, 2006.

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