{"id":829032,"date":"2025-02-22T13:12:50","date_gmt":"2025-02-22T19:12:50","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/22\/business-loans-accelerating-says-central-bank\/"},"modified":"2025-02-22T13:12:50","modified_gmt":"2025-02-22T19:12:50","slug":"business-loans-accelerating-says-central-bank","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/02\/22\/business-loans-accelerating-says-central-bank\/","title":{"rendered":"Business loans accelerating, says Central Bank"},"content":{"rendered":"
\n

The Cen\u00adtral Bank of T&T on Christ\u00admas Eve not\u00aded that the mo\u00admen\u00adtum of pri\u00advate sec\u00adtor cred\u00adit ac\u00adcel\u00ader\u00adat\u00aded in Sep\u00adtem\u00adber 2024, with the growth in busi\u00adness loans out\u00adpac\u00ading con\u00adsumer lend\u00ading. <\/p>\n

In its mon\u00ade\u00adtary pol\u00adi\u00adcy an\u00adnounce\u00adment for the fi\u00adnal quar\u00adter of 2024, the Cen\u00adtral Bank\u2019s mon\u00ade\u00adtary pol\u00adi\u00adcy com\u00admit\u00adtee (MPC) said the rise in cred\u00adit to busi\u00adness\u00ades was fair\u00adly broad based (man\u00adu\u00adfac\u00adtur\u00ading, dis\u00adtri\u00adb\u00adu\u00adtion, agri\u00adcul\u00adture, con\u00adstruc\u00adtion, and fi\u00adnance ar\u00adeas) while the growth in con\u00adsumer fi\u00adnanc\u00ading was con\u00adcen\u00adtrat\u00aded on durables, no\u00adtably au\u00adto\u00admo\u00adbiles. <\/p>\n

Fi\u00adnan\u00adcial sys\u00adtem liq\u00aduid\u00adi\u00adty was quite com\u00adfort\u00adable through\u00adout the sec\u00adond half of 2024, fol\u00adlow\u00ading the re\u00adduc\u00adtion of the re\u00adserve re\u00adquire\u00adment in Ju\u00adly from 14 to 10 per cent of ap\u00adplic\u00ada\u00adble de\u00adposits, ac\u00adcord\u00ading to the MPC. Com\u00admer\u00adcial banks\u2019 ex\u00adcess re\u00adserves at the Cen\u00adtral Bank av\u00ader\u00adaged $6.4 bil\u00adlion in the first two weeks of De\u00adcem\u00adber.<\/p>\n

De\u00adspite the rise in cred\u00adit to busi\u00adness\u00ades and con\u00adsumers and the \u201cquite com\u00adfort\u00adable\u201d fi\u00adnan\u00adcial sys\u00adtem liq\u00aduid\u00adi\u00adty, head\u00adline in\u00adfla\u00adtion in T&T re\u00admained very low, and was record\u00aded at 0.5 per cent in No\u00advem\u00adber, up from 0.2 per cent in the pre\u00advi\u00adous month. Core in\u00adfla\u00adtion, which ex\u00adcludes food prices, was un\u00adchanged at -0.3 per cent, while food in\u00adfla\u00adtion rose to 3.1 per cent from 2.4 per cent over the two-month pe\u00adri\u00adod, said the com\u00admit\u00adtee.<\/p>\n

Rel\u00ada\u00adtive\u00adly high do\u00admes\u00adtic Gov\u00adern\u00adment fi\u00adnanc\u00ading helped to push up lo\u00adcal trea\u00adsury bill rates. Com\u00adbined with the pol\u00adi\u00adcy rate cuts by the US Fed in late 2024, this re\u00adsult\u00aded in a nar\u00adrow\u00ading of the (neg\u00ada\u00adtive) TT\/US in\u00adter\u00adest dif\u00adfer\u00aden\u00adtial on three-month trea\u00adsuries by 63 ba\u00adsis points to -233 ba\u00adsis points in No\u00advem\u00adber 2024.<\/p>\n

The MPC said da\u00adta from Cen\u00adtral Sta\u00adtis\u00adti\u00adcal Of\u00adfice (CSO) showed that re\u00adal GDP ex\u00adpand\u00aded by 1.5 per cent (year-on-year) dur\u00ading the first quar\u00adter of 2024. This re\u00adflect\u00aded a re\u00adsilient non-en\u00ader\u00adgy sec\u00adtor, along\u00adside a mar\u00adgin\u00adal rise in en\u00ader\u00adgy sec\u00adtor out\u00adput. <\/p>\n

Ac\u00adcord\u00ading to sub\u00adse\u00adquent in\u00addi\u00adca\u00adtors mon\u00adi\u00adtored by the Cen\u00adtral Bank, con\u00adstraints in nat\u00adur\u00adal gas avail\u00adabil\u00adi\u00adty neg\u00ada\u00adtive\u00adly af\u00adfect\u00aded the en\u00ader\u00adgy sec\u00adtor dur\u00ading the sec\u00adond and third quar\u00adters. At the same time, non-en\u00ader\u00adgy pro\u00adduc\u00adtion ap\u00adpeared to have strength\u00adened, no\u00adtably in the trade, trans\u00adporta\u00adtion and stor\u00adage and con\u00adstruc\u00adtion sub-sec\u00adtors, said the MPC. <\/p>\n

Mean\u00adwhile, the un\u00adem\u00adploy\u00adment rate mea\u00adsured 4.8 per cent in the sec\u00adond quar\u00adter of 2024 com\u00adpared with 5.1 per cent one quar\u00adter ear\u00adli\u00ader and 3.7 per cent in the cor\u00adre\u00adspond\u00ading quar\u00adter one year ear\u00adli\u00ader.<\/p>\n

The Cen\u00adtral Bank not\u00aded that glob\u00adal eco\u00adnom\u00adic growth re\u00admained sta\u00adble in 2024 de\u00adspite on\u00adgo\u00ading geopo\u00adlit\u00adi\u00adcal con\u00adflicts in East\u00adern Eu\u00adrope and the Mid\u00addle East. <\/p>\n

The In\u00adter\u00adna\u00adtion\u00adal Mon\u00ade\u00adtary Fund in its Oc\u00adto\u00adber 2024 World Eco\u00adnom\u00adic Out\u00adlook fore\u00adcasts glob\u00adal ac\u00adtiv\u00adi\u00adty to ex\u00adpand by 3.2 per cent in 2024, slight\u00adly low\u00ader than the 3.3 per cent reg\u00adis\u00adtered in 2023. <\/p>\n

Gen\u00ader\u00adal progress to\u00adward in\u00adfla\u00adtion tar\u00adgets al\u00adlowed ma\u00adjor cen\u00adtral banks to ini\u00adti\u00adate mon\u00ade\u00adtary pol\u00adi\u00adcy eas\u00ading dur\u00ading the sec\u00adond half of 2024. In De\u00adcem\u00adber, the Unit\u00aded States Fed\u00ader\u00adal Re\u00adserve (US Fed) re\u00adduced its tar\u00adget range for the fed\u00ader\u00adal funds rate by 25 ba\u00adsis points from 4.25 to 4.50 per cent \u2013 its third rate cut for the year.<\/p>\n

\u201cIn its de\u00adlib\u00ader\u00ada\u00adtions, the MPC ac\u00adknowl\u00adedged the steady ex\u00adpan\u00adsion in the world econ\u00ado\u00admy, al\u00adbeit in an en\u00advi\u00adron\u00adment of sig\u00adnif\u00adi\u00adcant eco\u00adnom\u00adic pol\u00adi\u00adcy un\u00adcer\u00adtain\u00adty. Low in\u00adfla\u00adtion, buoy\u00adant cred\u00adit con\u00addi\u00adtions, am\u00adple liq\u00aduid\u00adi\u00adty and a con\u00adtin\u00adued mea\u00adsured ex\u00adpan\u00adsion of nonen\u00ader\u00adgy out\u00adput formed key com\u00adpo\u00adnents of the do\u00admes\u00adtic back\u00addrop, said the MPC.<\/p>\n

\u201cThe MPC recog\u00adnised, how\u00adev\u00ader, that close vig\u00adi\u00adlance re\u00admained es\u00adsen\u00adtial as de\u00advel\u00adop\u00adments could change rapid\u00adly. Tak\u00ading all fac\u00adtors in\u00adto ac\u00adcount, the Com\u00admit\u00adtee de\u00adcid\u00aded to main\u00adtain the re\u00adpo rate at its cur\u00adrent lev\u00adel of 3.50 per cent. The Cen\u00adtral Bank will con\u00adtin\u00adue to mon\u00adi\u00adtor in\u00adter\u00adna\u00adtion\u00adal and do\u00admes\u00adtic de\u00advel\u00adop\u00adments and will take fur\u00adther ac\u00adtions as nec\u00ades\u00adsary,\u201d the in\u00adsti\u00adtu\u00adtion stat\u00aded.<\/p>\n

De\u00adcem\u00adber\u2019s mon\u00ade\u00adtary pol\u00adi\u00adcy an\u00adnounce\u00adment was the 19th con\u00adsec\u00adu\u00adtive quar\u00adter the MPC main\u00adtained the re\u00adpo rate at its cur\u00adrent 3.50 per cent lev\u00adel. The last time the rate moved was on March 17, 2020, as the Cen\u00adtral Bank strove to ease mon\u00ade\u00adtary con\u00addi\u00adtions by sig\u00adnalling low\u00ader in\u00adter\u00adest rates, fol\u00adlow\u00ading the start of the COVID-19 pan\u00addem\u00adic.<\/p>\n

The next mon\u00ade\u00adtary pol\u00adi\u00adcy an\u00adnounce\u00adment is sched\u00aduled for March 28, 2025.<\/p>\n<\/div>\n

Tami Grisby
Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Cen\u00adtral Bank of T&T on Christ\u00admas Eve not\u00aded that the mo\u00admen\u00adtum of pri\u00advate sec\u00adtor cred\u00adit ac\u00adcel\u00ader\u00adat\u00aded in Sep\u00adtem\u00adber 2024, with the growth in busi\u00adness loans out\u00adpac\u00ading con\u00adsumer lend\u00ading. In its mon\u00ade\u00adtary pol\u00adi\u00adcy an\u00adnounce\u00adment for the fi\u00adnal quar\u00adter of 2024, the Cen\u00adtral Bank\u2019s mon\u00ade\u00adtary pol\u00adi\u00adcy com\u00admit\u00adtee (MPC) said the rise in cred\u00adit to busi\u00adness\u00ades was<\/p>\n","protected":false},"author":1,"featured_media":829033,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[378,2040],"tags":[8652,15114],"class_list":{"0":"post-829032","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"category-loans","9":"tag-business","10":"tag-loans"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/829032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=829032"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/829032\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/829033"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=829032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=829032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=829032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}