Rate Cuts in the Dominican Republic and Colombia
November 1, 2024
Central bank interest rates have been cut 50 basis points in Colombia and 25 bps in the Dominican Republic to 9.75% and 6.25%, respectively. Colombia’s rate has now fallen by 325 basis points in 2024 and by 350 bps from the peak of 13.25% sustained from April 2023 through mid-December. Colombia’s central bank interest rate might have dropped even more that today’s 50 bps, as a minority of 3 of the 7 policymakers favored a cut of 75 bps. Inflation has slowed to 5.8% in their economy. The Dominican Republic’s rate cut was the third 25-bp reduction since August. A peak of 7.0% had previously been maintained from November 2023 until the move this past August. As in Colombia, CPI inflation in the D.R. of 3.3% is still well below the central bank interest rate level.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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