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THE Central Bank says caution must be exercised in 2026 in striking a balance between protecting TT's foreign reserves while creating the proper conditions for sustainable economic activity to grow and thrive.

The bank made this observation in its final monetary policy report for 2025, issued on December 31.

In its observation, the bank said factors such as wage adjustments and aggregate demand have the potential to offset this balance if not managed carefully. The former includes the ten per cent wage increase to public servants promised by the UNC should it win the April 28 general election. The UNC won the election 26-13-2. Partial payments were received in December.