The Central Bank lowers the monetary policy rate once again

DOMINICAN REPUBLIC - In Brief 01 Nov 2024 by Magdalena Lizardo
For the third consecutive month, the Central Bank has decided to reduce the monetary policy rate by 25 basis points, bringing it down from 6.50% in October to 6.25% annually. Similarly, the rate for the permanent liquidity expansion facility (1-day Repos) has decreased from 7.00% to 6.75% per year, while the rate on remunerated overnight deposits has been lowered from 5.00% to 4.75% per year. Since August 2024, the monetary policy rate has dropped by a total of 75 basis points. The Central Bank explained that this decision considers recent developments in the international environment, including rate cuts in advanced economies and declining raw material prices. Domestically, inflation has stayed within the lower bounds of the target range of 4.0% ± 1.0% this year, amid economic growth near its potential. Furthermore, the expansion of private credit in national currency is gradually converging with nominal GDP growth.

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