Central Bank raises overnight rate from 5.00 to 5.50%

Santo Domingo.- The Central Bank (BC) raisedits overnight rate from 5.00 to 5.50% annually , a decision it affirms aims to a deal with "possible deviation ininflation targets that could be produced by the upward trend on oil prices."

It said the measure on the benchmark rate, adoptedat its last monetary policy meeting, takes effect today Monday.

The Central Bank said as a result of formulato manage short-term liquidity, the overnight rate climbed from 3.50% to 4.00%per annum and the expansion facilities rate (repos), rises from 6.50% to 7.00%annually.