Dominican Republic

The Dominican Republic reported a slight monthly deflation of 0.1% in April, contributing to a CPI increase of 3.0% YoY, which aligns with the lower boundary of the central bank’s target range. This stabilization in inflation supports the continuation of a contractionary monetary policy stance, with the monetary policy rate held at 7.0%. The stability of inflation expectations and the minimal increase in the USD-DOP exchange rate reflect a well-anchored economic environment.