Central Bank Reports Slowing Inflation
The Central Bank of Trinidad and Tobago says global economic growth remains modest.
In its latest assessment, the Bank states that the International Monetary Fund projects world output to grow by 3.2 per cent in 2025, slightly lower than last year.
Locally, the Bank reports stronger energy sector performance but continued slowing momentum in non-energy industries, and it has decided to maintain the repo rate at 3.50 per cent.
According to a media statement from the Central Bank of Trinidad and Tobago, global economic prospects remain subdued, as geopolitical tensions and trade policy uncertainty continue to affect economic activity.
The International Monetary Fund, in its October 2025 World Economic Outlook, projected global growth of 3.2 per cent this year, marginally lower than in 2024.
The Central Bank notes that while the United States economy has shown durability, other major economies are experiencing weaker growth alongside elevated inflation.
Energy prices have declined in recent months, with West Texas Intermediate crude oil averaging below US$60 per barrel in November and December, while international natural gas prices also softened.
Data from the Ministry of Energy shows higher natural gas and crude oil production, along with strong growth in ammonia and urea output, although methanol production declined.
The release notes that non-energy sector activity remained soft, with slower performance in distribution, construction and manufacturing offsetting gains in finance and utilities.
Inflation, however, remained low during the second half of the year, with headline inflation measuring 0.5 per cent in November, while food inflation slowed and building material prices increased at a reduced pace.
Financial conditions were described as balanced.
Liquidity in the banking system improved, but private sector credit growth slowed, reflecting weaker business and consumer borrowing.
The Monetary Policy Committee stated that while inflation is contained and liquidity conditions have improved, economic growth remains tentative.
Based on these conditions, the Committee agreed to maintain the repo rate at 3.50 per cent and said it will continue to monitor economic developments ahead of its next policy announcement, scheduled for March 27th, 2026.
