Latin American Economy & Business - June 2014 (ISSN 1741-7430)

At the end of August last year, the Banco Central de la República Dominicana (BCRD – the central bank) chose to hike its key policy rate by 200 basis points to 6.25%, in response to currency volatility. It had previously reduced the rate by 75 basis points in late May 2013 in order to counter the general softness of economic activity.