• In its July 2024 monetary policy meeting, the Central Bank of the Dominican Republic (BCRD) decided to keep its policy interest rate (TPM) steady at 7.00% annually. This decision reflects the evolution of the international environment, particularly the sustained high interest rates in the United States, increased commodity prices, and higher container shipping costs.
• The BCRD also announced that the overnight liquidity expansion facility rate remains at 7.50% annually, while the overnight deposit rate continues at 5.50% annually. These decisions consider the robust performance of the Dominican economy and the growth of private credit, with inflation remaining within the target range of 4.0% ± 1.0%.
• Interannual inflation in the Dominican Republic has significantly decreased, standing at 3.46% in June 2024, within the lower range of the target due to the monetary and fiscal policies implemented over the past year. Core inflation, which excludes the most volatile components of the basket and is more directly associated with monetary conditions, was around the target center at 3.98% in June 2024.
• National economic activity expanded by 6.2% year-on-year in June, with an average growth of 5.1% in the first half of 2024, aligning with its potential. The economy is expected to grow by around 5% in 2024, one of the highest expansions in the region, according to international organizations like the International Monetary Fund (IMF) and the World Bank.
• Relative exchange rate stability has been maintained, and international reserves have increased to over US$15.2 billion in July, equivalent to more than 12% of the country’s gross domestic product (GDP) and around six months of imports, exceeding the metrics recommended by the IMF.

 (Source: Dominica Today)

• Canadian economic activity expanded at a slower pace in July as a measure of inflation fell to a four-month low, Ivey Purchasing Managers Index (PMI) data showed on Wednesday.
• The seasonally adjusted index fell to 57.6 from 62.5 in June. The Ivey PMI measures the month-to-month variation in economic activity as indicated by a panel of purchasing managers from across Canada. A reading above 50 indicates an increase in activity.
• The gauge of employment rose to an adjusted 56.1 from 52.9 in June, while the prices index was at 59.2, down from 62.3 and its lowest level since March. The unadjusted PMI fell to 55.3 from 62.4.

(Source: Reuters)

• Total U.S. household debt levels edged up in the second quarter, but overall delinquency rates stabilised, indicating that borrowers are still in decent enough shape to support the economy, a report from the Federal Reserve Bank of New York said on Tuesday.
• The bank report, part of its survey of household debt and credit conditions, showed that overall debt levels rose by $109Nn, or 0.6%, in the second quarter to $17.80 trillion. Overall borrowing levels are now $3.7Tn above where they were at the end of 2019.
• Worse-than-expected job market data last week has made financial markets nervous that the economy may be on the cusp of a downturn. Fed policymakers, who already signaled they expect to begin cutting rates in September now that inflation is near the 2% target rate, have said they don't want to wait too long before lowering rates and have cited delinquencies as one area they are closely monitoring.
• On that front, there was some relief with the report showing that overall delinquency rates remained at 3.2%, unchanged from the first quarter, and still well below the 4.7% rate seen at the end of 2019 before the coronavirus pandemic. However, transitions in delinquent borrowing levels rose slightly in the second quarter for credit cards and auto loans, both remaining elevated although the pace of worsening slowed.
• Mortgage balances were up by $77Bn to $12.52Tn, while auto loan levels increased by $10Tn, and overall credit card borrowing outstanding rose by $27Bn by the end of the quarter to $1.14Tn. Credit card balances during the quarter were 5.8% above the level they stood at a year ago. Retail cards and other consumer loans were effectively flat, while student loan balances declined by $10Bn.

(Source: Reuters)

• Kevin Gordon, the Chief Executive Officer of tTech Limited, has announced the appointment of Rob Mayo-Smith as the company's Chief Operating Officer. The appointment became effective July 25, 2024.
• Rob Mayo-Smith has worked across the Caribbean in several senior positions, including CFO, CEO, regional CEO for Digicel, and Country Manager for Cable and Wireless. As COO, he will be responsible for managing the day-to-day operations of tTech.
• On July 11, 2024, the Directors of tTech Limited disclosed that two majority shareholders, Edward "Teddy" Alexander, and G. Christopher Reckord, divested 52,012,834 tTech shares. This sale constituted 49.1% of the issued shares of tTech Limited and was acquired by Simply Secure Group.
• Simply Secure Group, a security service provider situated in Ft. Lauderdale, Florida, is owned by Kevin Gordon and Rob Mayo-Smith, who currently hold the positions of CEO and COO at tTech, respectively.
• The acquisition is anticipated to create synergistic benefits for both companies, especially in the realm of cybersecurity.

 (Sources: JSE & NCBCM Research)

• Mexico's headline inflation rate likely accelerated again in July to reach its highest level in more than a year, while the core index is forecast to continue to moderate, a Reuters poll showed on Tuesday.
• Increasing prices in July would likely make it more difficult for the Mexican central bank to cut its key interest rate in its decision later this week. The median estimate of 16 analysts forecast an annual headline inflation rate in July of 5.57%, its highest level in more than a year and its fifth consecutive month of ticking up.
• The poll showed that annual core inflation, which eliminates volatile energy and food prices, likely fell in July for the eighteenth consecutive month to settle at 4.02%, its lowest level since February 2021.
• At the end of June, the central bank decided to hold its benchmark interest rate steady after lowering it in March for the first time since it began its restrictive cycle in mid-2021. At the time, however, the bank noted that slowing inflation could pave the way for cuts.
• Since then, headline inflation has shown upward pressures even as core inflation approaches the monetary authority's target range of 3%, plus or minus one percentage point. The monthly rise in consumer prices for July was seen at 1.02%, relative to the previous month, while core inflation was expected to increase by 0.29%, according to the survey.
• The National statistics institute INEGI will release July inflation data on Thursday, and later in the day the central bank is scheduled to make its monetary policy announcement.

(Source: Reuters)

• The government of Guyana explained that it has been able to take measures to cushion the cost of living and increase the price of basic foodstuffs for the population. In a live broadcast, the president reminded the nation that the rise in global food prices and the costs of transportation, goods, and services resulted from the Russian-Ukraine war and the global pandemic, among other disruptions.
• In the European Union, food price inflation increased from the last quarter of 2021 to reach 7.5% in May 2022. In Latin America and the Caribbean, food price inflation surged by 81.6% between January 2022 to September 2023.
• However, the low food inflation rate in Guyana is due to deliberate investments and measures implemented by the government to boost food production by providing the necessary support to the poultry sector and farmers. This is achieved through the deliberate interventions of the government and the policies and programs in the budget that are buttressing the economy and creating an environment that leads to stability.
• The government implemented a slew of measures to further reduce food inflation, such as the removal of value added tax (VAT) on fertilisers, agrochemicals, pesticides and several inputs in the poultry industry, at an annual estimated cost of $262 Mn.
• Further, to boost food production, the government removed VAT on machinery, corporate income tax, reversed drainage and irrigation (D&I) fees, constructed shade houses, farm to market roads and D&I infrastructures.
• The government reinstated the ‘Because We Care’ cash grant, placing over $22Bn into the hands of parents over the last four years, to supplement the income of many households. Old age pension and public assistance were increased by more than 75% and 111.1%, respectively. The undertaking provided over $13.4Bn and $2.8Bn into the hands of these beneficiaries, respectively.
• Before the end of 2024, President Ali has pledged to highlight more strategies that will increase disposable income at the household level and expand prosperity.

(Source: St. Kitts and Nevis Observer)

• China's exports grew at their slowest pace in three months in July, missing expectations and adding to concerns about the outlook for the vast manufacturing sector, while a rush to boost chip supplies before expected U.S. tech curbs bumped up imports. Analysts say China's factories will likely face stiff pressure in the months ahead, hobbled by Western tariffs and demand woes, while volatility in financial markets and U.S. recession fears raise fresh challenges for policymakers trying to bolster a fragile economic recovery.
• Outbound shipments climbed 7.0% in July from the year earlier, and customs data on Wednesday showed a slower pace of growth than June's 8.6% rise and missing forecasts of a 9.7% increase. "Due to base effect, China's exports may keep a single-digit growth in the near future, but considering the slowing external demand and tariffs, the outbound shipments in the second half of 2024 will face bigger pressure," said Lynn Song, chief economist for Greater China at ING.
• Imports rose at a robust 7.2% rate, reversing a 2.3% decline in June and marking the strongest performance in three months. It also beat analysts' expectations of a 3.5% rise. The brighter imports figures were underpinned by Chinese firms' rush to purchase chips ahead of expectations of further United States curbs on chips exports to the Asian giant, said Xing Zhaopeng, senior China strategist at ANZ.
• "Looking ahead, the upward trade cycle may have ended. Both imports and exports are expected to slow down in the third quarter." The slowdown in export growth adds to concerns about the outlook for the sector, analysts say, with many countries growing increasingly uneasy about China's trade dominance.

(Source: Reuters)

• US shares opened higher on Tuesday as an uneasy calm returned to global markets after days of sharp falls. The Nasdaq closed 1% higher, the S&P 500 rose by 1%, and the Dow Jones was 0.8% higher. London's FTSE 100 closed 0.2% higher, while Germany's Dax ended flat, and France's Cac 40 lost 0.3%. Markets in South Korea and Taiwan regained ground, rising around 3.5% after record falls.
• Stock markets were hit by a global sell-off on Friday as weak US jobs growth stoked fears of a downturn in the world's largest economy. Official data showed employers added 114,000 jobs in July, far fewer than expected, while the unemployment rate rose to 4.3%, the highest in nearly three years. The figures suggested the long-running US jobs boom might be ending, driving speculation about when and by how much the Federal Reserve will cut interest rates. High borrowing costs and signs of a waning AI-fueled rally also worried markets.
• Friday's decline brought the Nasdaq down about 10% from its recent peak. The Dow Jones dropped 1.5%, and the S&P 500 ended 1.8% lower, following declines in Asia and Europe. Japan's Nikkei 225 index tumbled nearly 6%. The Federal Reserve held interest rates but signaled likely cuts in September.
• Recession fears have renewed calls for the Federal Reserve to cut interest rates in September. Last week, the Fed held rates at 5.25%-5.5%, the highest in two decades, while other central banks cut rates. Some experts believe this was a mistake, likely causing continued market volatility. "Markets are very volatile and will likely stay so until the Fed decision in September," said Stefan Angrick of Moody's Analytics. Seema Shah of Principal Asset Management questioned if the Fed had waited too long, noting job gains had dropped below the 150,000 threshold for a solid economy.
• The market turmoil occurred amid a heated US presidential campaign, intensifying political debate over the Fed's actions. President Joe Biden said the economy was still making progress, with the US economy expanding at an annual rate of 2.8% this spring. Analysts noted the unemployment rate rise was driven by more people looking for work, not a surge in job losses.

(Source: BBC News)

• The U.S. State Department updated its travel advisory for Jamaica last week, maintaining the Level 3 status but softening its language on crime, noting that “tourist areas generally see lower rates of violent crime than other parts of the country.”
• In the latest advisory, the previous statement about sexual assaults occurring “frequently, including at all-inclusive resorts,” has been removed. Now, it states that the U.S. Embassy “routinely receives reports of sexual assaults, including from U.S. citizen tourists at resorts.”
• The State Department also included new information about medical preparedness. “U.S. citizens should not expect the same level of health care available in Jamaica as is available in the United States. This includes generally lower levels of emergency service response times or routine care for illness or injury,” the advisory states.
• The update on Jamaica is routine, as the State Department reviews travel advisories at Level 3 and above every six months.
• The reissued advisory was met with significant opposition. Jamaican Prime Minister Andrew Holness and Sandals Resorts International Chairman Adam Stewart denounced the advisory's portrayal of Jamaica, while Jamaica's U.S. Ambassador, Audrey Marks, called on U.S. officials to retract their evaluation.
• The most recent advisory strongly recommends that American travellers obtain travel insurance with medical evacuation coverage before visiting Jamaica. The ongoing Level 3 advisory suggests that U.S. citizens reconsider travel, which is one step below Level 4, where U.S. citizens would be advised against travelling to Jamaica.

• An Anti-Money Laundering (AML) Unit has been established within the Companies Office of Jamaica (COJ) to enhance regulatory compliance and transparency.
• Speaking at a recent Jamaica Information Service (JIS) Think Tank, Manager for the AML Unit, Inger Hainsley-Bennett, shared that its primary focus is to leverage the new powers granted to Registrars, ensuring that the information provided by companies is accurate and verifiable.
• The Unit also ensures beneficial ownership compliance, so that beneficial ownership information is accurately reported and that the true owners and controllers of companies are disclosed.
• By implementing the AML Unit, the COJ aims to foster a culture of transparency and accountability within its organisation and among partners.
• This strategic implementation comes in response to the heightened scrutiny and monitoring efforts by the Financial Action Task Force (FATF) to combat money laundering and ensure financial integrity.
• Jamaica was placed on the Financial Action Task Force (FATF) Grey List in February 2020 and was officially removed in June 2024. This removal came as a result of the country enhancing the effectiveness of its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regime, fulfilling the commitments in its action plan concerning the strategic deficiencies.

(Source: JIS & NCBCM Research)