Understanding Central Banks and Monetary Policy - New Space Economy

Understanding Central Banks and Monetary Policy - New Space Economy

Central banks and monetary policy play essential roles in shaping a country’s economy. They influence how money flows, how much it costs to borrow, and how stable prices remain. This section explains what central banks are, what they do, and how monetary policy works.

The Central Bank of the Dominican Republic (BCRD) reported today that interest rates in multiple banks have fallen significantly in recent months, as a result of monetary policy decisions adopted since September 2024. According to the economic analysis for the first quarter of 2025, the weighted average interest rate on loans granted by multiple banks closed at 14.77 percent in March, a reduction of 132 basis points compared to 16.09 percent rec…