DomRep Hikes Rate, Replaces FinMin

DomRep Hikes Rate, Replaces FinMin

Bonds Corporate & Sovereign Strategy Dominican Republic Economy & Policy

The Dominican Republic's central bank tightened its rate by 100bp, bringing it to 6.0%, its highest level since February 2009. The central bank cites headline inflation, which at 6.2% in January is running above the bank’s 5-6% target for this year. "We believe the pace of future rate hikes will likely decline as annual inflation falls within the official target range," says JPMorgan. Nomura says this is a good policy move to control aggregate demand, which is growing at a fast pace. Meanwhile,

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