Economy & Business - June 2023

DOMINICAN REPUBLIC | Cutting interest rates. On 31 May the Dominican Republic’s central bank (BCRD) reduced interest rates by 50 basis points from 8.50% to 8.00%, citing progress in reducing inflation. In a statement the BCRD said that the reduction in inflation owed to the programme of monetary tightening initiated in November 2021 by the government led by President Luis Abinader and the implementation of government subsidies. The BCRD said that this had contributed to reducing pressures on domestic demand as well as moderating international prices of raw materials and transport costs. It notes that monthly inflation in April was 0.24%, bringing the annual rate to 4.9%, and cites prognostic models which suggest that year-on-year inflation could drop to 4.5% in May, further within the target rate of 4% +/-1.