The Central Bank of the Dominican Republic has decided to keep interest rates unchanged at 8.5% after its latest monetary policy meeting, the third consecutive occasion in which the agency has opted to freeze hikes.
This decision was taken in line with the evolution of inflation, which has progressively declined in recent months due to the fall in transport costs and the price of raw materials and oil. Moreover, core inflation has fallen to 6.5%, which is evidence of the «effectiveness» of the economic policies adopted to counter inflationary pressures.
Under the bank’s current forecasts, interest rates are already at an «appropriate» level for inflation to converge to the 4% target range during 2023, provided that the cyclical factors that have affected the volatile component of prices dissipate.
Nevertheless, the Central Bank of the Dominican Republic has assured that it will continue to «monitor» economic conditions in order to take the «necessary» measures to preserve macroeconomic stability, reaffirming its commitment to conduct monetary policy towards the achievement of its inflation target.
Source: (EUROPA PRESS)
