LatinNews Daily - 30 June 2023

* The Dominican Republic’s central bank (BCRD) has reduced interest rates by 25 basis points from 8.00% to 7.75%. This follows its decision to reduce interest rates by 50 basis points at the end of May. In a statement the BCRD explained that its latest decision was due to progress in reducing inflation which is within its target range of 4.0% (+/-1.0), which it attributes to the government’s monetary and fiscal policies, lessened pressures of domestic demand, and a reduction in the price of raw materials globally. The BCRD highlights the continued drop in inflation, which came in at -0.2% in monthly terms and 4.4% year-on-year in May, down from 0.24% in monthly terms and 4.9% annually in April. It cites prognostic models which suggest that yearly inflation will continue its decline and stay within the target range of 4.0% +/-1.0.