Interest rates reduced
The Central Bank has reduced interest rates by 50 basis points from 6.25% a year to 5.75% effective 1 April 2015. At the same time the overnight deposit rate will go down to 4.25%.
The Central Bank said that the inflation rate for February was at 1.02% and the projection for the year shows that inflation will remain in the 4.0% – 1% range.
By reducing interest rates it is hoped that the liquidity in the financial system will improve and it will also help to increase reserves.
According to Consensus Forecast, the United States will grow by 3.1% in 2015, the Euro Zone by 1.4% and Japan by 1.1%.
The Dominican economy is still dynamic, growing by 6.6% in January. In March, the annual credit growth in the private sector was 13.4% up on the same time period last year.
Source: DR1, Bancentral
March 31, 2015
Category: DR News |