Bankers Alejandro Grullon (Banco Popular) and Luis Molina Achecar (BHD) warned yesterday that the Central Bank’s announced plan to increase interest rates from 34% to 45-50% on its savings deposits will have an immediate effect on the cost of borrowing money in the country. Grullon told Hoy newspaper that in the coming days there would be a gradual increase in the interest rates on loans to the general public and businesses, which would adversely affect production sectors. Economic analysts ask where the government will get the money to pay these new high interests – by printing more money not backed by reserves? In an article in Hoy newspaper today, journalist Ramon Nunez Ramirez says the monetary policy of issuing Central Bank savings deposits is responsible for the increase of an average of RD$2 billion in money in circulation, which in turn has aggravated Dominican financial problems, while postponing the future solution and upping its cost. He writes that while the CB maintains these financial instruments, which oblige it to issue emissions of money regardless of reserve levels, it will make it very difficult to reduce and stabilize the exchange rate and temper inflation.