The Central Bank of Trinidad and Tobago maintained the repo rate at 3.50% in its June 26, 2026 monetary policy announcement, citing a combination of less favourable and highly uncertain global conditions, including elevated inflation and tighter monetary conditions abroad, alongside domestic low inflation, moderating economic activity and slower private sector credit growth. The central bank said system liquidity remained ample despite periodic fluctuations, with commercial banks’ daily excess reserves averaging TTD 4,578 million in mid-June, and it will continue to monitor liquidity conditions in light of public sector financing, credit activity and subdued inflation. Headline inflation slowed to 0.3% year on year in May 2026 from 0.7% in March, while core inflation was unchanged at 0.8%, and indicators suggest overall economic momentum may have slowed in the first quarter of 2026 as natural gas constraints weighed on the energy sector and uncertainty damped non-energy business confidence and investment; private sector credit growth also eased to 4.0% in April from 5.3% in December 2025. Globally, the central bank said the Middle East War has disrupted energy exports and traffic through the Strait of Hormuz, lifting commodity and maritime costs, while the International Monetary Fund’s April 2026 World Economic Outlook projected global growth of 3.1% and inflation of 4.4% for 2026. The central bank said it will continue to monitor international and domestic developments and t