Dominican Republic: Central Bank raises policy rate
February 8, 2011
In January, consumer prices increased 1.24% over the previous month, which was above the 0.92% rise recorded in December but was below the 1.31% expansion recorded in January 2010. The monthly increase reflected higher prices for transport, as well as for food, alcoholic beverages and tobacco. Annual headline inflation remained at the 6.2% recorded in December. At the current level, inflation sits slightly above the upper limit of the 5.0%-6.0% target range set by the Central Bank for 2011. As a consequence, at its most recent meeting on 28 February, the Central Bank decided to raise the monetary policy rate by 100 basis points to 6.00%. The Central Bank had previously lifted the policy rate in December 2010, which was the first hike since September 2009.
Author: Armando Ciccarelli, Head of Data Solutions