On the 3rd, deals were closed with a rate of 10.06%. For the commercial sector alone, loans negotiated at preferential rates reached an average of 9.58%, for consumer and personal loans 12.05%, and for mortgage and development loans 10.55%. In 2021, preferential loans were negotiated with rates averaging 7.3%, a period in which the commercial sector obtained financing with interest rates of 6.85%, consumer loans 9.16%, and mortgage and development loans 8.23%.
SANTO DOMINGO- Although slightly, interest rates, including mortgage rates, are beginning to experience slight increases in the Dominican market, if the behavior of credits in the last three years is taken into account.
Listín Diario published the following information today:
Credit users in the national financial system have begun to feel slight increases in the first four days of August, almost imperceptible in some cases and with at least one point more in consumer or personal loans, if compared with the cost of financed money in 2021, 2020 and 2019.
According to data published by the Central Bank regarding the behavior of interest rates in the Dominican financial system, the average active interest rate from August 1st to 4th was 19.56% for consumer and personal loans, which are those in which no guarantee is required, but rather the client's profile, a pre-approval and, generally, with short terms ranging from months to one to three years and to a lesser extent up to five years.
Annual
Throughout 2020, 2021, and 2019, the average interest rates for consumer and personal loans were 15.20%, 15.45%, and 18.11%, respectively. Last Thursday, banks negotiated consumer and personal loan terms with their clients at an average rate of 19.53%.
In the first four days, businesses obtained financing at an average rate of 11.074%. On the 4th, loans were negotiated at 11.95%, coming from businesses with rates of 9.89% on the 1st and 10.22% and 10.92% on the 2nd and 3rd of this August.
For mortgage loans, the rates reached an average of 11.23%. The preferential rate by sector, established in 2019, has also risen slightly. In May 2022, it had a weighted average of 8.78%, in June 9.53%, in July 9.45%, and in the first four days of August, it closed with an average of 9.27%, but on the 4th, it closed at 9.84%. On the 3rd, some deals were closed with a rate of 10.06%. For commercial loans alone, those negotiated at preferential rates reached an average of 9.58%, for consumer and personal loans 12.05%, and for mortgage loans 10.55%.
In the past year 2021, preferential loans were negotiated with average rates of 7.3%, a period in which the commercial sector obtained financing with interest rates of 6.85%, consumption at 9.16%, and mortgage and development loans with rates of 8.23%.
Central Bank says inflation is easing
The Central Bank of the Dominican Republic (BC) indicated today that the consumer price index (CPI) for the month of July registered a variation of 0.50%, lower than the 0.64% registered in the month of June, which shows that the year-on-year inflation continues to gradually decrease, standing at 9.43% in July 2022.
The governing body explained that there has been a reduction of 0.21 percentage points compared to the maximum rate recorded this year, which reached 9.64% in April.
Analysis of the overall CPI behavior shows that the group that contributed most to inflation in July of this year was transportation, which increased by 0.61%, within which the increase in airfare rates stands out (23.69%).
The increase in airfares had the greatest single impact on the CPI for July, accounting for 18% of the index's variation. To a lesser extent, price increases in some land transportation services, such as public car fares (0.69%) and motorcycle taxi fares (0.23%), also contributed to inflation in this group.
Similarly, vehicle repair services (0.72%), automobiles (0.19%), car washes (0.94%), and lubricants and oils (1.44%) also saw increases. The Central Bank explained that the variation in the transportation group index "was not greater due to the effectiveness of the domestic fuel subsidies implemented by the Executive Branch, which have prevented an overflow of inflation ."
Other groups that contributed to inflation were miscellaneous goods and services (1.00%), restaurants and hotels (1.10%), food and non-alcoholic beverages (0.36%) and housing (0.45%).
The CPI for the miscellaneous goods and services group was the second in impact on inflation in July with a variation of 1.00%, explained mainly by price increases in both services (1.08%) and personal care items (1.14%).
The 1.10% increase in the restaurants and hotels group is primarily due to the rise in prices for food prepared outside the home (1.13%). The increase in the price index for this group is a result of higher prices for basic inputs used in food preparation, which directly impact the consumer price of these food services, the regulatory body stated.
As for the housing group CPI, it registered a growth of 0.45% due to increases in rental services (0.85%) and housing maintenance (0.89%). This group's variation did not significantly impact the overall inflation rate for July 2022 because of the government's decision to suspend increases in residential electricity rates.
The institution's monthly report states that "the set of measures implemented by the Government, particularly the fuel subsidy in the local market and the reversal of the increase in the electricity tariff scheduled for the July-September quarter of 2022, has mitigated the rate of price growth and contributed to preventing inflation in July from being higher.".
