The Association of World Banks multiple from the Dominican Republic considered The monetary measures adopted by the Central Bank are considered appropriate and timely, with the understanding that one of its main reasons is to control inflation.
In a press release, the ABA expressed that the accumulation of two relevant shocks such as the pandemic and Russia’s war with Ukraine has placed the world in an inflationary situation that has not occurred in recent decades, turning into a scenario complex, volatile, and uncertain.
In that order, he remembered that recently the Federal Reserve of the United States of America approved The biggest increase in interest rates in 22 years to contain inflation and anticipates keep raising this year.
He explained that, in this global context, the economies are forced to try to control inflation, due to the damages that are derived both in people and in business activities. “Latin America and our country are not the exception. Most central banks in the region have made significant increases in their monetary policy rates, especially those that follow the inflation targeting model”, he added.
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The guild explained that, definitively, the transmission channel of this measure is verified through the bank interest rates, both active and passive, which the banks are obliged to adjust as they go by. renewing said operations, always considering the particularities and characteristics of each activity.
than the above, will be always aligned with the signals of the monetary policy aimed at controlling inflation and that the economy grows according to its potential, so that the certainty to successfully overcome this difficulty can be preserved. easy international situation.
The ABA indicated that that the banking sector is willing to continue supporting the productive sectors, including small and medium-sized companies in these new scenarios, where prudence, comprehensive risk management and support must prevail, so that credit continues to play a relevant role in the generation of wealth and employment.