Only One Rate Hike Ahead As T&T's Economy Slows

• Fitch Solutions has revised its end-2019 policy interest rate forecast for Trinidad and Tobago (T&T) downwards from 5.75% to 5.25%.

 

• Weak economic activity, depressed inflation, and a pause in interest rate hikes by the US Federal Reserve (Fed) will lead the Central Bank of Trinidad and Tobago (CBTT) to take on a more dovish stance.

 

• T&T’s unfavorable economic outlook will outweigh concerns about its worsening interest rate differential with the US causing large-scale capital outflows according to Fitch.

 

(Source: Fitch)