This policy was conducted in a national economic environment characterized by the rising of prices of the petroleum products at the pump and the rate of public transport. These upward adjustments contributed to the increase in inflationary pressures recorded at the end of the quarter. At the current account level, there was an exceptional increase in private non-exchange transfers from abroad.
For its part, the financial situation of the State was marked by a decline in the monetary financing of the budget deficit. The data available on the banking system for the month of April 2017 show an improvement in its profitability, the maintenance of asset quality and the strengthening of deposits as the main source of financing.
Internationally, the continued improvement in economic growth and the employment situation in the United States led the Federal Reserve to raise its key rates again, while the European Central Bank maintained a accommodative monetary policy.
In the Dominican Republic, in response to the rise in inflation, the monetary authorities have chosen to raise key rates.
On the international commodity markets, oil prices fell, while food prices were up after three consecutive months of decline.