Jul 2008 Financial News

Central Bank governor: More efforts needed to tackle inflation

Jul 23, 2008

Central Bank Governor Ewart Williams is calling for a more holistic approach to tackling the inflation rate, currently estimated at ten per cent.

Speaking to the media after a Ministry of Finance stakeholder briefing yesterday at the Hyatt Regency Hotel, Port of Spain, Williams did not disclose whether the rates for the last month-expected to be released on Friday-will again be in the double digits.

Williams said this country like all other developing ones are being affected by inflation at present mostly due to food costs and fuel related expenditure.

The governor said to tackle inflation, "we need to work on this in all areas, consumer spending, credit, government spending, wage pressures, increasing food production, there is a whole list of measures, we need to employ all of these methods."

Recently, the Government's plans to issue an unlimited amount of treasury bonds to help control inflationary pressure was debated in Parliament. It was one measure employed by the government to help mop up excess liquidity. The Central Bank also increased the repo rate recently. This triggered an increase in the interest rates at banks and hopefully curbed wild borrowers.

Several economists have said they are waiting to see the results of these ventures come to life but do not think inflationary pressure will easy up anytime soon, once the government continues to engage in high levels of spending.


Source:
Trinidad Express, Page 20
Wednesday, July 23rd 2008
Aretha Welch-awelch@trinidadexpress.com