Macroeconomic Forecast DOMINICAN REPUBLICJune 2012 | Macroeconomic Forecasts
The Dominican Republic's central bank lowered its benchmark policy rate for the first time in three years, cutting 75 basis points to bring it down to 6.0%. This encourages us to revise up our end-2012 consumer price inflation forecast from 4.0% to 4.5%. Inflation ticked down from 4.9% in March to 4.1% in April on the back of lower oil prices, giving room to the monetary authorities for a rate cut. However, we believe inflation will tick up later in the year once the effects of the expansionary monetary policy are felt in the economy.
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