Santo Domingo’s Central Bank cuts their benchmark interest rate again
With the Dominican Republic’s economy expanding by only 0.3% in the first quarter of the year, less than expected, their Central Bank has announced it is lowering the benchmark interest rate from 5 to 4.25%.
“Production has been below its potential capacity and during the January-March quarter the growth rate was below the average from previous years as a result of weakened internal demand,” policy makers said. “Macroeconomic models indicate that if measures are not taken, production will remain below potential until the end of 2014.”
The decision is expected to continue to stimulate a decline in interest rates for consumer spending and construction.