Spanish
Santo Domingo.- The Dominican Republic maintained its monetary policy interest rate (MPR) at 5.75% per annum for the seventh consecutive month, while the rate of the permanent liquidity expansion facility (1-day Repos) remains at 6.25% per annum, the Central Bank (BCRD) reported this Thursday.
Meanwhile, the rate of remunerated deposits (Overnight) remains at 4.50% per annum, as announced by the issuing bank in a statement.You may be interested in: Faride Raful highlights reduction in the homicide rate
Faced with an international landscape that is "turbulent and highly volatile", the BCRD "has kept its monetary policy rate unchanged during the first seven months of this year, while macroprudential measures were adopted with the aim of strengthening financial stability", the note highlighted. For this measure, he added, "it was taken into consideration that restrictive international financial conditions are maintained and uncertainty persists globally." However, the BCRD highlighted that uncertainty levels have recently begun to moderate in light of the agreements reached between the United States and some of its main trading partners, which will imply smaller increases in their tariff rates compared to what was initially presented in April and could have an impact on better prospects for international trade. In the national context, it was taken into account that inflation has remained for more than two years within the target range of 4.0% ± 1.0%. In that sense, the issuing bank recalled that the year-on-year inflation was 3.56% as of June this year, while core inflation, which excludes the prices of the most volatile components of the basket, stood at 4.15%, around the center of the target. The BCRD's forecast models indicate that headline and core inflation will remain within the target range of 4.0% ± 1.0% this year and 2026. The Dominican Republic's monthly economic activity indicator (IMAE) registered a cumulative growth of 2.4% in the first half of the year compared to the same period of 2024, and the local economy is expected to grow around 3% and 3.5% this year, "as global uncertainty dissipates and monetary conditions continue to ease, contributing to boost domestic demand," the statement said.
