Dominican Republic: Central Bank leaves rates unchanged for second consecutive month
December 30, 2010
In November, consumer prices increased 0.31% over the previous month, less than half the 0.67% rise recorded in October. The monthly increase reflected higher prices for housing as well as for healthcare. As a result of the more moderate rise in prices, annual headline inflation dropped from 6.2% in October to 5.4% in November. Owing to moderating inflation, at the latest meeting on 30 December, the Central Bank decided to keep the monetary policy rate unchanged at 5.00% for the second consecutive month. The Central Bank tightened its policy in October 2010, lifting the policy rate by 75 basis points, the first hike since September 2009. The Central Bank estimates that inflation ended 2010 at 6.2%, falling within the 6.0-7.0% target-range set for 2010. The Central Bank has set a lower 5.0%-6.0% target-range for 2011 and expects inflation to end the year within this range.
Author: Armando Ciccarelli, Head of Data Solutions