Dominican Central Bank Will Lower Rates to Counter External Headwinds

• The Banco Central de la República Dominicana (BCRD) will implement one 25 basis point cut in 2020 to 4.25%, as low inflation and a more dovish US Federal Reserve support expansionary monetary policy.
• Fitch has revised up the 2020 inflation forecast from 3.1% to 3.5% in 2020, amid increasing food prices, but believe lower energy prices will keep levels of Dominican inflation contained.
• Risks are weighted heavily to the downside, as the outbreak of the Covid-19 (coronavirus) could strain domestic growth and put increasing pressure on the central bank to adopt additional easing.

(Source: Fitch)