Back

LatinNews Daily - 02 September 2020

In brief: DR’s central bank cuts monetary policy rate

* The Dominican Republic’s central bank (BCRD) has announced a further reduction to its benchmark interest rates after analysing the impact of the coronavirus (Covid-19) pandemic on the Dominican economy. The BCRD announced a cut in its monetary policy rate from 3.5% to 3%, and a reduction in the 1-day repurchase agreement (Repo) facility rate from 4.5% to 3.5%, while the overnight deposit rate remained at 2.5%. In March, the BCRD cut the monetary policy rate from 4.5% to 3.5%; reduced the 1-day Repo facility rate from 6% to 4.5%; and cut the overnight deposit rate from 3% to 2.5%. According to the BCRD report, year-on-year inflation in July 2020 was 4.35%, within its target range of 3% to 5%. It stated that recent inflationary pressures are temporary, and associated with the prices of certain foods and the recovery of international oil prices, so it expects that inflation will remain within the target range. The latest forecast from the United Nations Economic Commission for Latin America and the Caribbean (Eclac) expects the Dominican economy to contract by 5.3% in 2020.

End of preview - This article contains approximately 189 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

LatinNews
Intelligence Research Ltd.
167-169 Great Portland Street,
5th floor,
London, W1W 5PF - UK
Phone : +44 (0) 203 695 2790
Contact
You may contact us via our online contact form
Copyright © 2022 Intelligence Research Ltd. All rights reserved.