Central Bank trims benchmark rate from 5.25% to 5.0%
Santo Domingo.- The Central Bank on Sunday announced a decrease of its monetary policy benchmark rate for a third consecutive month, in this occasion a decline of 25 basis points, from 5.25% to 5.00% per annum starting June 1.
It said the decision places this year’s cumulative rate reduction at 125 basis points.
According to the short term liquidity management formula, the overnight rate is reduced from 3.75% to 3.50% per annum and the rate of expansion facilities (repos) decreased from 6.75% to 6.50% per annum.
“The decision to cut the benchmark rate was adopted after analyzing the national macroeconomic picture, especially the balance of risks around inflation projections and the evolution of the relevant international environment and its impact on market expectations and the Dominican economy,” the Central Bank said on its website.
“It’s expected that the policy decision will impact positively on economic growth without jeopardizing the inflation target in the policy horizon.”
June 1, 2015
Category: DR News |