Central Bank cuts interest rates

[NewsWhore]

As of Friday, 2 January, Central Bank announced cuts in the overnight deposit interest from 9.5% to 8.5%. The bank also announced a 2% drop in the so-called Lombarda interest rate, from 16 to 14%. In a press release, the Central Bank says the measure marks the start of a downward trend that will continue in February. The bank attributes the decline in interest rates to inflation closing at 4.52% for 2008, which is below expectations. The Central Bank says that the decline in the interest rates is consistent with the behavior of fuel prices and domestic demand, and that inflation in the DR was negative in October, November and December. Business sector spokesmen applauded the measure.
See http://www.bancentral.gov.do/estadisticas_economicas/... (http://www.bancentral.gov.do/estadisticas_economicas/sector_monetario_financiero/tasa_remunerada_lombarda_ingles.xls)

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