Trinidad central bank hikes rates in response to Fed forward guidance
‘Altered expectations' over timing of US normalisation puts pressure on Caribbean economy
The Central Bank of Trinidad and Tobago (CBTT) raised its benchmark interest rate for the first time since September 2012 on Friday, in a move that foreshadows the sudden adjustments smaller economies could be forced to make in response to Federal Reserve ‘normalisation'.
The rate increase, from 2.75% to 3%, follows the Fed's monetary policy decision on September 17, which caused US Treasury yields to jump and the Trinidad and Tobago dollar to depreciate.
The Federal Open Market Committee (FOMC)
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