Trinidad & Tobago holds rate as inflation pressures ease

    The Central bank of Trinidad & Tobago held its repurchase rate unchanged at 2.75 percent, with inflationary pressures easing slightly while business confidence has been weakened by uncertainty over Europe's debt issues and the impending fiscal cliff in the United States.
    The central bank added that it would allow last month's 25 basis point cut in its interest rate to work its way through the banking system.
    Headline annual inflation, based on retail prices, slowed to 7.7 percent in September from 7.9 percent in August, though on a monthly basis prices rose by 1.1 percent. The main reason for the decline in annual inflation was lower food prices, the bank said.
    The core inflation rate, which excludes food, rose marginally to 2.8 percent in September from 2.7 percent, and the bank said credit growth remained modest while consumer lending, which had been "quite lethargic over the past two months" picked up momentum, rising 2.2 percent annually in August.
    "Concerns about the Euro area and the impending fiscal cliff in the US have tempered expectations about a sustained global recovery and affected business confidence worldwide, including in Trinidad & Tobago," the central bank said.
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