DR1 Daily News - Dominican Republic

The Monetary Board of the Dominican Republic approved a significant monetary stimulus program on 1 June 2023. The program seeks to make available RD$94 billion to finance productive sectors and household consumption at low interest rates.

The measures are the follow up to the recent announcement by the Central Bank (BCRD) that it has begun reducing the monetary policy interest rate for the first time since 2021. The announcements are forthcoming after the Central Bank ascertained that inflation is again on the annual target of 4%±1% and the time is right to end the monetary tightening programs that sought to restrain inflation.

The new liquidity measures of the Monetary Board include the release of resources from the legal reserve for about RD$34 billion, equivalent to 2% of the liabilities subject to legal reserve. The money is for lending to productive sectors and households...