DR1 Daily News - Dominican Republic

The Central Bank of the Dominican Republic (BCRD) announced on 29 August 2024 the reducing of its monetary policy interest rate by 25 basis points. The rate was lowered from 7.00% to 6.75% per annum. The overnight rate was reduced from 5.50% to 5.25%.

The monetary policy interest rate is set by the Central Bank to control inflation and stabilize the economy. In contrast, the overnight rate is the interest rate at which banks lend and borrow money from each other overnight.

The rate adjustments were decided during the Central Bank’s August 2024 monetary policy meeting. The BCRD’s decision to reduce the interest rate reflects the bank’s assessment of a favorable economic outlook, both domestically and internationally.

The BCRD has been implementing a liquidity provision program, channeling over RD$199 billion in loans to the private sector at interest rates of up to 9.0%...