Jun 2016 Financial News

First Citizens awaits rate hike decision

Jun 15, 2016

While she declined to offer a prediction about the repo rate, First Citizens Group CEO Karen Darbasie said the banking group is eagerly waiting the United States Federal Reserve’s decision on a rate hike.

Her comments came as the Federal Reserve began its two-day meeting yesterday. Officials are widely expected to leave short-term interest rates unchanged at their meeting, following a dismal May jobs report. A decision on whether there will ne a rate increase is expected this afternoon when the Fed releases its latest policy statement and projections at 2 pm.

Darbasie, who commented on the matter following a special shareholders meeting at the Trinidad Hilton and Conference Centre, said the bleak job report had raised doubts about the market and increased speculation on whether the US had succumbed to prolonged slump or is just on a brief pause.

Darbasie said two months ago the Federal Reserve had suggested that interest rates might increase at this month’s meeting.

“However the job data that came out a week and a half, or two weeks ago, showed US job growth to be much slower than anticipated. We are waiting to see what the Federal Reserve chairman says with respect to interest rates increasing in the US.

“I strongly suspect that based on the less than robust response on the job growth on the job market that they will adopt a wait and see...but we will adopt a wait and see.”

The US is one of T&T’s main trading partners, so economic developments there need to be continuously monitored, she said.

At yesterday’s special meeting First Citizens announced the appointment of four new directors: Idrees Omardeen, Troy Garcia, Samuel Henry and Jayselle McFarlane.

Anthony Smart will serve a second term as chairman and Courtenay Williams will continue in the post of director.

Darbasie said even after six months of operating in the midst of T&T’s economic recession First Citizens has recorded strong growth in its deposit base and increased profit before tax.

“Our investment grade rating was reaffirmed by Standard and Poor’s at BBB plus. The bank continues to be on a very solid footing to take advantage of the strengths that we have,” she said.

Source:
Nadaleen Singh
Trinidad Guardian
Wednesday June 15, 2016

http://www.guardian.co.tt/business/2016-06-15/first-citizens-awaits-rate-hike-decision