BRH Monetary Policy Note (2020-Q1)
Summary — This report by the Bank of the Republic of Haiti (BRH) analyzes monetary policy during the first quarter of fiscal year 2020 (October-December 2019). It covers the global and Haitian economic environment, monetary policy decisions, and performance indicators of the banking system.
Key Findings
- The Haitian economy was significantly affected by socio-political unrest during October and November 2019, leading to a decline in economic activity, imports, and public revenue.
- The BRH lowered interest rates on BRH bonds to stimulate the economy.
- The BRH did not sell foreign currency during the quarter due to the relative stability of the national currency.
- The banking system showed stability, but with a decline in asset quality and profitability ratios.
- The BRH projects a relative stabilization of inflation in the second quarter of fiscal year 2020 if the circulation of people and goods improves.
Full Description
This note from the Bank of the Republic of Haiti (BRH) examines monetary policy during the first quarter of fiscal year 2020. It reviews the global economic environment, noting the continued strength of the US economy and the impact of trade tensions on the Eurozone. It then analyzes the Haitian economic situation, characterized by socio-political unrest and its impact on economic activity, imports, and public revenue. The report details the BRH's monetary policy decisions, including interest rate cuts and measures to manage liquidity, and concludes with an overview of the banking system's performance and future perspectives.