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But while we concur with the CBTT’s bleak assessment of the country’s economic outlook, we reiterate that lower rates will have Links of London impact on stimulating the economy in . Ineffective Ammunition Although food price inflation hit . yoy in August , a .pp increase from July, the three month moving average measure our favoured indicator of shorterterm inflationary trends edged down slightly, implying Links of London B Charm the peak of price pressures may now have passed. As a result we have not revised our RPI estimated from . and continue to anticipate a slowdown to . for as high base effects and sslow domestic economic activity drive headline prices lower. This view of subdued growth is evident with core inflation which attempts to strip out the impact of food prices anchored around the . yoy level throughout most of , implying that Links of London A Charm is supply issues rather than demandpull pressures which are driving the current price spike. Unsurprisingly, therefore, the biggest concern for policymakers is how to stimulate domestic economic activity through the reactivation of local credit markets. In its inflation report, the CBTT highlighted commercial credit, which declined by . yoy in July , as a key area of focus in order to boost levels of consumption and productive investment. The collapse in loans to businesses appears driven by creditors’ lack of confidence in the broader macro outlook, and in our view a lowering of lending rates will do little to change Links of London Two Hearts Charm Red caution prevailing in the country’s banking sector. Even the rolling out of the budget, something the central bank argued could remove some of uncertainty surrounding Trinidad and Tobago’s investment outlook, is unlikely to boost investor perceptions of the economy given the lack of clear policy proposals for how to stimulate growth.