Dominican business sector hails interest rate reductions

Representatives of the industrial, commercial and agricultural sector have said that the reduction in interest rates announced by the Central Bank will lead to an increase in commercial activities, which in turn will contribute to reactivating the country’s economy.

Yesterday the Central Bank announced lower overnight interest rates from 9.5% to 8.5% annually, or 1 percentage point, and the Lombarda interest rate from 16% to 14% annually, or 2 percentage points.

The president of the Herrera Industrialists Association (AEIH), Manuel Cabrera welcomed the measure as “timely” and said that it was an indication that the monetary authorities were fulfilling their promises.

He said that this reduction was smaller than expected, and that it should have been between 10 and 12 per cent. Nonetheless, he said that he was confident that these would return to the ideal level for promoting economic development.

The president of the National Commercial Companies Organization (ONEC), Pedro Pérez, said that this would contribute to reactivating the economy, and that many businesses would now be able to get loans at a more reasonable rate. He said that the measure would provide a much-needed boost to sales.

He did however point out that the monetary authorities needed to exercise caution in order to maintain exchange rate stability.