Dominican Republic: Central Bank holds policy rate steady
June 2, 2011
In April, consumer prices increased 0.87% over the previous month. The monthly increase reflected higher prices for transport, as well as for housing. While the reading was below the 1.16% rise recorded in March, it was above the 0.35% increase recorded in April 2010. Accordingly, annual headline inflation jumped from 7.6% in March to 8.2%. At the current level, inflation sits above the upper limit of the 5.0%-6.0% target range set by the Central Bank for 2011 for a fifth consecutive month. Despite the continued increase in inflation, at its 30 May meeting, the Bank decided to keep the monetary policy rate unchanged at 6.75%. The decision marked a pause in the tightening cycle, after two consecutive hikes in April and May.
Author: Armando Ciccarelli, Head of Data Solutions