T&T Seen Cutting Rates Further

Trinidad & Tobago’s central bank recently cut its repo rate by 50bp to 6.75% in reaction to a drop in inflation, which is down at 5.9% in July from a peak of 15.4% in October, and a slowdown in domestic demand. JPMorgan expects the bank, which has reduced the rate by 200bp since March, to continue easing, amid decelerating inflation and a weak domestic economy. The shop forecasts GDP will shrink 1.0% this year. The next repo rate announcement will be on September 25.