Santo Domingo.- The Central Bank (BC) on Wednesday cut the overnight interest rate by 50 base points, from 6% ??to 5.5% annually, a decision taken in July’s meeting on monetary policy.

The measure which took effect yesterday is based on projections confirming the inflation rate would continue below the lower limit for this year’s target of 5.50% ± 1.00%.

The Central Bank said the annual inflation rate stood at 2.71% in June and the cumulative rate from January to June at 0.89%, while annual core inflation reached 3.36%, noting that the forecast models don’t foresee significant inflationary pressures on the monetary policy.

“Locally production and domestic demand indicators show a performance below its long-term trend,” it said.