Business leaders slam interest rate rise
Santo Domingo.- The National Association of Young Entrepreneurs (ANJE) says that the increase in the interest rate from 4.25% to 6.25% will affect credit and public consumption capacity and will further undermine the low economic growth rate recorded this year.
The organization described the measure as a “heavy blow” that limits the positive effects that were expected from the recent measures implemented by the Government to boost the country’s economic growth.
“In recent months the government announced economic incentive measures, including the release of RD$20 billion of legal reserves and increased spending on infrastructural investment. We therefore believe that these measures will not have the expected positive effect for the economy as a result of the announced interest rate increase,” stated ANJE president Frank Elías Rainieri Kuret.
ANJE expressed its concern about the slow increase in the GDP, just 1.6% in the first half of the year, pointing out that it had reached 7% in 2010 and 4% in 2011.
The business organization says that the economic information issued by the Central Bank indicates that the trade, construction and industrial manufacturing sectors are showing negative performance in the first semester, leading to the conclusion that “these inconsistencies and lack of policy coordination are having a negative impact on a weakened economy that has shown significant slowdown during this year”.
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