The Central Bank raises its interest rate 25 points and takes it from 8 % to 8.25 %

Santo Domingo, DR
The Central Bank (BCRD), at its September 2022 policy meeting, decided last night to increase its monetary policy interest rate (TPM) by 25 basis points, from 8.00 % to 8.25 % per annum.

Thus, the rate on the standing liquidity expansion facility (1-day Repos) goes from 8.50 % to 8.75 % p.a. and the rate on interest-bearing deposits (Overnight) from 7.50 % to 7.75 % p.a.

“This decision is based on a thorough evaluation of the recent behavior of the economy, especially inflationary pressures,” says the monetary entity.

With regard to external factors, there has recently been a moderation in commodity prices, particularly oil and food; as well as in container shipping costs, which have gone from a peak of about US$20,000 per container from ports on the Asian continent in 2021 to a global average of about US$4,000 per container at present.

Inflation falls

The monthly variation of the consumer price index (CPI) stood at 0.21% during August 2022, the lowest in the last 27 months, says the BCRD.