The Association of Multiple Banks of the Dominican Republic (ABA) valued as vital the contribution of the inflation targeting scheme, established by the Central Bank, to generate certainty in economic agents and price stability, for the sake of a business climate that encourages domestic and foreign investment.
The ABA highlighted the importance for a developing economy, such as the Dominican Republic, of maintaining inflation within the target range of 4% ± 1, starting in 2012, except when inflationary pressures have a high imported component. as is the case of the post-covid situation and the geopolitical conflicts that have generated supply and demand shocks.
In a press document, the Association of Banks indicated that “the commitment and efforts to achieve the inflation target have been the compass of monetary policy, guiding the Dominican economy towards levels of sustained growth and peaks in the region during the last decade”.
He expressed that economic growth is essential to be able to meet the social requirements and well-being of the population, and for this it is necessary to maintain stability in the country.
Likewise, the union affirmed that this monetary policy has been a guarantee for the promotion of local and foreign investment. “Economic stability is one of the main inputs that investors take into account when making their business plans, along with clear market rules, private security, legal security and social stability,” said the ABA.
He recalled that, as recently reported by the Central Bank, average inflation fell from 13.0% to 3.5% during the last decade, which has provided certainty for the establishment of new businesses and the growth of existing ones.