Central Bank Governor Jwala Rambarran says he will seek to deal with double digit inflation in the country as early as next week.
Speaking with the media at the Hyatt Regency (Trinidad) in Port of Spain yesterday, during a Ministry of Planning and Sustainability diversification workshop, Rambarran said the Central Bank will use all the monetary policy instruments at its disposal to deal with inflation issues.
"The key one being the Repo rate. And next week Friday an announcement will be made as to where we intend to place the Repo rate in the context of rising inflation.
Of course we also have to balance that against the fact that we do have an economy that is weak and we are looking at how best we can stimulate growth so it is a balance in consideration."
Asked about the state of the economy he said a more definitive statement will come in due course but he maintained the position that this economy has been fairly resilient.
"And I think we need to take that resilience against the backdrop of the global crisis that has been ongoing for five years now. And so we have done fairly well to hold up to our own in the face of external challenges."
"It cannot be denied that there has been a weakening of the economy, over time growth has become sluggish but we are looking at how best we can at the level of the Central Bank, support the government in terms of its particular mandate for growth, and as you know the Central Bank's mandate is really stability. So both must work hand in hand, that is why I said policy coordination is key," he said.
Questioned about the criticism from some quarters on his appointment Rambarran said he appreciated all the comments, the words of advice and support given and all comments will be considered.
Rambarran, who said he understands the independence of the Central Bank and the role that it plays, said he intended to preserve that dimension of independence of Central banking.