It’s not over yet: central bank warns inflation could rise

NASSAU, Bahamas — Central bank governor John Rolle said yesterday that consumers could see inflation rising further before it tapers off.

“It is still difficult to say whether inflation in the Bahamas has already peaked,” he said at yesterday’s quarterly press conference.

“I will note that the inflation rate announced in the Bahamas is lower than in the United States. I’m not saying 1:1 inflation will be the best. as it was in the US. ”

Rolle added: This could lead to an uncontrollable spiral in terms of pressure on wage-setting and bargaining processes in the private sector.You can have a near-autonomous process of inflation that doesn’t even have a basis for what’s going on In terms of demand for goods and services. ”

The central bank governor also said there was some concern that a slightly expanding tranche of the country’s foreign currency earnings was being diverted to consumption rather than savings, as the country imports a sizeable amount of commodities.

Meanwhile, Rolle revealed yesterday that the regulator’s savings bond initiative for small investors is set to launch this year.

“We are very close to sharing some of the work we have done on the structure of that facility with the Treasury Department,” he said.

“It is aimed at small individuals and retail investors who can take a disciplined, long-term, incremental approach to saving. It is focused on giving small investors access to the kind of returns that investors receive from government agencies, and is not to be seen as a stopgap measure for the overall funding needs of governments at any level. ‘ explained Rolle. It’s not over yet: central bank warns inflation could rise

Show More
Back to top button