T&T To Hold Rates Steady Amid Low Inflation And Fed Easing

• Fitch Solutions will maintain their view that the Central Bank of Trinidad and Tobago (CBTT) will hold its monetary policy rate at 5.00% through end-2020 amid low inflation and weak economic growth.
• Declining food prices will keep low inflation anchored, and a narrowing interest rate differential with the US will reduce pressure on the CBTT to increase rates.
• Risks to the end-2020 interest rate forecast are weighted to the downside as the sustained spread of the Covid-19 (coronavirus) could spur monetary easing.

(Source: Fitch)