CB governor on monetary policy

[NewsWhore]

Central Bank Governor Hector Valdez Albizu defended recent Central Bank monetary policies implemented to counteract external pressures on the balance of payment. Valdez Albizu agrees with Hacienda Minister Vicente Bengoa who argues that the recent appreciation of the dollar to the peso is seasonal, and nothing out of the ordinary. Business and consumer groups have also complained about rising interest rates, but Valdez says this is a Latin American and European trend. Consumer bank lending rates have increased up to 50% this year, going from 16.5% in May to 24.5% in August. In a meeting with President Leonel Fernandez and economic advisors at the Presidential Palace, Valdez Albizu said the peso is where it should be. "The measures we have taken tend to adjust and guarantee macroeconomic stability and to slow down the economy," he explained. Valdez Albizu also agreed with projections from the Economic Commission for Latin America and the Caribbean (ECLAC) that indicate the Dominican economy will grow 5.5% in 2009.

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