Dominican Republic: Central Bank leaves rates unchanged for a third consecutive month
January 31, 2011
In December, consumer prices increased 0.92% over the previous month, almost three times the 0.31% rise recorded in November. The monthly increase reflected higher prices for housing as well as for food, alcoholic beverages and tobacco. As a result of the monthly increase, annual headline inflation jumped from 5.4% in November to 6.2% in December, which was in line with Central Bank estimates. Despite the pick-up in inflation, the Central Bank decided to keep the monetary policy rate unchanged at 5.00% for a third consecutive month its 31 January policy meeting. The Central Bank last lifted the policy rate in November 2010, which was the first hike since September 2009. The Central Bank has set 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