Dominican Central Bank raises benchmark rate to 5.00%

Santo Domingo.- The Central Bank increased its monetary policy interest rate by 50 basis points, going from 4.50% to 5.00% per year.

“In this way, the rate of the permanent liquidity expansion facility (1-day Repos) increases from 5.00% to 5.50% per year and the interest-bearing deposit rate (Overnight) from 4.00% to 4.50% per year.”

In a statement issued Mon., the monetary authorities said the decision is based on an exhaustive evaluation of the behavior of the world economy, the greater persistence of inflationary pressures and the perspectives of international financial conditions.

It said the price dynamics continue to be affected by external shocks that are more permanent than expected, associated with higher prices for oil and other important raw materials for local production, as well as the increase in the global cost of transporting containers and other disruptions in supply chains.