Dominican Central Bank to increase monetary policy rate again
Santo Domingo.- The increase in inflation in Latin America, above the levels projected by central banks, has forced the entities that regulate the financial system to move their monetary policy rates upwards, as a strategy to face the inflationary process, due to the international context and the war between Russia and Ukraine.
In the case of the Dominican Republic, the Central Bank (BC) reported yesterday that it will once again increase its monetary policy rate as it has been doing since November of last year, now at 100 basis points. Thus, it will go from 5.50% per year to 6.50%, a decision that, despite being an alternative to control inflation, affects bank customers.
The Central Bank indicated through a statement that the rate of the permanent liquidity expansion facility will increase from 6.00 to 7.00% per year and the interest-bearing deposit rate (Overnight) from 5.00 to 6.00% per year.