• Acting Prime Minister Chester Cooper has urged the Grand Bahamian business community to “get in the game” and not let economic opportunities pass them by, claiming that investor confidence in Grand Bahama has never been higher.
• Speaking at the Grand Bahama Chamber of Commerce’s (GBCC) annual installation of officer and directors banquet on Saturday, Cooper highlighted Carnival Cruise Line’s Celebration Key project, a $600Mn investment set to be the largest cruise project globally.
• “The projections are staggering; visitor arrivals in Grand Bahama are expected to exceed 1.4Mn by the end of 2025, reaching up to 4Mn annually by 2027. This not only represents a significant boost in tourism but also heralds a new era of job creation, revenue generation, and overall economic impact for our island. The investments don’t end there, and they are real. Real in tourism, but also real in the maritime and industrial sectors. Additionally, investor confidence in Grand Bahama has never been higher.”
• He urged the GBCC and its members to “engage, get in the game, and mobilize more organic, domestic investment.”
• “The revival of Grand Bahama’s economy must be a concerted effort, one that requires the hands-on engagement of the entire business community, in partnership with the government, GBPA, the Chamber, and all local stakeholders. Together, we have the power to encourage organic growth through Domestic Investments, drive sustainable economic growth to create opportunities for local entrepreneurship, and ensure that the benefits of the economic renaissance are widely shared and deeply rooted in the fabric of this community,” said Cooper.
• Finally, Cooper emphasised that the government fully expects Grand Bahama businesses to have the first crack at opportunities that become available and has also suggested that the cruise lines visiting Bahamian ports ought to temper the language in their onboard advisories.

(Source: Eye Witness News)

• In a bid to bolster its prominence in the cruise and yachting sector, Antigua and Barbuda has set sights on expanding its capacity. The decision, endorsed by the government last Wednesday, entails the development of the northern precinct of Rat Island, earmarked as an extension of the existing cruise port.
• Although the precise financial outlay for this endeavor remains undisclosed, a note emanating from the cabinet meeting underscored the anticipation of a substantial return on investment, likely to substantiate the expenditure. Once realised, the extended port is poised to accommodate the berthing needs of yachts and petite cruise vessels, augmenting the region’s allure for maritime enthusiasts.
• Information Minister Melford Nicholas emphasised the symbiotic relationship between infrastructure development and economic prosperity, envisioning a surge in entrepreneurial endeavors catering to both residents and tourists.
• Looking beyond the maritime domain, the government unveiled plans to undertake dredging operations in Crabbs and the northern corridor. This strategic initiative aims to accommodate larger vessels ferrying essential construction materials, particularly cement, to satiate the burgeoning demands of the construction sector.

(Source: Caribbean News Weekly)

• Central banks are carefully navigating a shift from a prolonged period of interest rate hikes to a strategy of gradual decreases in borrowing costs. This cautious approach reflects concerns about rekindling inflation amid ultra-low unemployment rates.
• Following synchronized rate hikes starting in late 2021, major economies are expected to see inflation stabilize around target levels this year. This stabilisation provides a backdrop for central banks to begin easing monetary policy.
• The Swiss National Bank's recent surprise rate cut signifies the beginning of significant policy easing, with expectations that the Federal Reserve, European Central Bank, and Bank of England will follow suit with further cuts.
• The U.S. Federal Reserve faces a unique situation, given the robust performance of the U.S. economy. Factors such as the upcoming election and growing concerns about inequality complicate the Fed's decision-making process.
• Europe confronts economic challenges, including Germany's recession and sluggish growth in the UK. Amidst these challenges, uncertainty looms over when rate cuts will end, especially as structural changes impact the natural rate of interest.
• Overall, the world's biggest central banks are on the starting line of reversing a record string of interest rate hikes, but the way down for borrowing costs will look very different from the way up. There will be no floodgates or fireworks. Instead, banks on opposite sides of the Atlantic are likely to move in the smallest increments with periodic pauses, fearing that ultra-low unemployment could rekindle inflation rates still above their targets.

(Source: Reuters)

• The slowdown in inflation for February suggests a possible shift in the Bank of England's monetary policy. A decrease in inflation often prompts central banks to consider lowering interest rates to stimulate economic activity. This news may indicate a forthcoming adjustment in the Bank's strategy to support economic growth.
• The decrease in the annual increase of consumer prices from January to February indicates a slight easing of inflationary pressures. This moderation could alleviate some concerns about the cost of living for households and may provide relief for consumers facing higher prices across various sectors.
• While investors anticipate potential interest rate cuts in the future, they also expect the Bank of England to maintain its current interest rate stance for the time being. This suggests a cautious approach by the central bank, weighing economic indicators and market conditions before implementing any changes to monetary policy.
• Despite the slight slowdown in inflation, the UK continues to grapple with relatively high inflation compared to other advanced economies in the G7. This persistent high inflation rate underscores ongoing challenges in managing price stability and could influence the Bank of England's policy decisions moving forward.
• The finance minister's suggestion that the Bank of England might contemplate lowering interest rates as inflation approaches its target reflects ongoing discussions about appropriate monetary policy measures. Lowering interest rates could help support economic recovery and bring inflation closer to the central bank's target level.
• Prime Minister Rishi Sunak's optimism about the economy despite economic challenges signals confidence in the government's handling of economic affairs. His call for voter support for the Conservative Party underscores the political significance of economic performance and suggests an attempt to capitalize on positive economic indicators for electoral gain.

(Source: Reuters)

• During his contribution to the 2024/25 Budget Debate in the House of Representatives on March 21, Prime Minister, the Most Hon. Andrew Holness announced that the toll-free period for use of the May Pen to Williamsfield leg of the Southern Coastal Highway Improvement Project (SCHIP) will be extended to July 1, 2024.
• The extension is being granted to facilitate the conclusion of negotiations with TransJamaican Highway Limited (TJH), which operates the East-West Highway from Caymanas to May Pen, under a Concession Agreement.
• In the meantime, the Prime Minister reminded that the Government intends to move further westward from Williamsfield in Manchester to Hodges in St. Elizabeth. The extension will include a Northern Mandeville Bypass, a Spur Tree Bypass, a Southfield Bypass, and a Black River Bypass.
• TJH has the Right of First Refusal to operate the new May Pen to Williamsfield Highway and has exercised its right under the Concession Agreement by making an offer to the Government of Jamaica.

 (Source: JIS)

• Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, has reiterated his continued support for implementing the Blue Transformation approach in the Region.
• Blue Transformation is an approach aimed at redefining the region’s relationship with aquatic foods and proposes a vision of sustainable aquaculture production, effective fisheries management, and improved value chains.
• Minister Green, speaking on March 19 at the Food and Agriculture Organisation of the United Nations (FAO) four-day regional conference in Guyana, said priority must be given to diversifying the livelihoods of small-scale fishers and fish farmers.
• The Minister highlighted that the country is implementing a fisheries development programme with two components – promoting community-based climate resilience and modernising licensing and registration systems.
• “As such, we are using the technology to develop what we call Irie Fins, a Jamaican fisheries aquaculture information system where our fishers, fish farmers, and vessels can register using their mobile devices,” he added. He further also highlighted strategies being used in Jamaica to increase yields in aquaculture and encourage diversity among artisanal fishers.

 (Source: JIS)

• The Bahamas’ prospects for continued tourism growth depend on bringing 2,000 hotel rooms, or 15% of its total pre-COVID inventory, back on line swiftly with the industry at “maximum capacity”.
• Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, stated that the country must “address capacity” if its largest industry is to maintain the post-pandemic growth momentum, adding: “We have to get those rooms out of order back in order.”
• Apart from the loss of the now-demolished Melia Nassau Beach Resort’s 694 rooms and the closure of Atlantis’ Beach Towers property for redevelopment into the Somewhere Else concept (a new resort set to open in 2024 on Atlantis Paradise Island), the BHTA president said a “significant” amount of inventory has also been lost in Grand Bahama, largely stemming from the closure of two of the three properties that form the Grand Lucayan complex.
• Voicing optimism that hotel developers and operators are working to “reverse” these trends, Mr Sands explained that The Bahamas has withstood earlier negative international media coverage of its crime woes and US/Canadian travel warnings with bookings for the upcoming Easter period and winter tourism peak “meeting or exceeding the expectations” of many resorts.
• However, Mr Sands said increased room inventory - both among hotels and vacation rentals - remains critical to maintaining tourism and the wider economy’s momentum by providing sufficient accommodation to meet the still-surging demand for a Bahamas vacation.

 (Source: The Tribune)

• Mexico’s central bank (Banxico) cut interest rates in a split decision, joining regional peers that have been easing monetary policy as inflation slows.
• Banxico, on Thursday cut its benchmark rate by a quarter point to 11%, as forecast by 26 of 29 economists surveyed by Bloomberg. Three analysts expected the bank to keep the key rate unchanged.
• Notably, deputy governor Irene Espinosa voted to leave the rate unchanged, while the other four board members all backed the reduction, the bank said in its policy statement.
• Future decisions “will take into account the progress in the inflation outlook and the challenges that prevail,” the bank said. “It will also consider the incidence of both the restrictive policy stance that has been maintained and that prevailing in the future on inflation throughout the horizon in which monetary policy operates.”
• Consumer prices rose 4.4% in February from the previous year, down from 4.88% a month earlier and roughly half the peak of 2022. Core inflation, which strips out volatile items like fuel and is closely watched in Mexico, also came down to 4.64% last month. Banxico targets inflation at 3%, plus or minus 1 percentage point.
• The latest Citibanamex survey published Wednesday shows economists see both headline and core inflation slowing to 4.1% this year, before reaching 3.71% and 3.69%, respectively, in 2025. They also forecast the key rate to fall to 9.5% this year and 7.5% by the end of 2025.

(Source: Bloomberg)

• Investors are flocking to U.S. medium-term government bond funds and helping push their assets to record highs as uncertainty about the Federal Reserve's policy path prompts them to seek the sweet spot between income and protection.
• According to Morningstar Direct data, U.S. medium-term government bond funds, which include Treasuries and debt issued by government-linked agencies, attracted $9.8Bn in the first two months of this year. That compared with just $2.3Bn for long-term government funds and an outflow of $3.5Bn from short-term government bond funds.
• Assets under management (AUM) at U.S. medium-term government bond funds stood at a record $252Bn at the end of February, up 2% this year, the data showed. By contrast, the AUM at U.S. short-term and long-term government bonds had dropped 3.8% and 2.7% to $93.4Bn and $158.3Bn, respectively.
• The rush into medium tenors has been driven by shifting expectations for Fed policy. In early 2023, as the Fed's swift policy tightening caused the yield curve to invert, investors sought short-term bonds for their yields. Bond prices move inversely with yields. So, as talk of rate cuts grew in the second half of last year, investors flocked to long term bonds whose yields would tend to fall more, hence boosting their prices and yielding capital gains.
• The scenario has changed again this year. As the Fed contemplates cutting rates but inflation remains sticky, markets have gone from pricing six rate cuts in 2024 at the end of December to now expecting just three rate cuts - reshaping investor strategies in the bond market once more.
• "Some of this uncertainty in the rate path could be a driver of moving towards the middle of the curve, as investors want to have duration exposure but don’t feel confident enough in the Fed path to be long on the yield curve," said Michael Parnell, senior strategic research analyst at Verus.
• "Medium-term bond funds could continue to attract more flows over the next few quarters as they present a nice income opportunity and an appealing risk and reward profile for price action relative to duration, culminating in an attractive total return opportunity," said Karen Manna, portfolio manager at Federated Hermes.

(Source: Reuters)

• Britain's economy is moving in the right direction for the Bank of England to start cutting interest rates, Governor Andrew Bailey said on Thursday as two of his colleagues dropped their votes for a rate hike.
• The BoE's committee of interest rate-setters voted 8-1 to keep borrowing costs at their 16-year high of 5.25% as the two officials who had previously called for higher rates changed their stance.
• British government bonds rallied immediately after the announcement, and the sterling fell against the dollar and the euro.
• Investors slightly increased their bets on interest rate cuts through 2024, with a 76% chance of a first cut in June and a reduction of 75 basis points now fully priced in by December. Bailey said there had been "further encouraging signs that inflation is coming down" but he also said the BoE needed more certainty that price pressures were fully under control.
• "We're not yet at the point where we can cut interest rates, but things are moving in the right direction," he said in a statement. The BoE decision follows the U.S. Federal Reserve's announcement on Wednesday that it remained on track for three interest rate cuts this year, prompting stock market rallies.
• The European Central Bank has tried to cool talk about a run of rate cuts for the eurozone as investors increasingly consider the fight against global inflation to have been won.

(Source: Reuters)