Dominican Republic Interest Rate

The Central Bank of the Dominican Republic left its benchmark rate unchanged at 5.75% in its July 2025 meeting for the seventh consecutive month. The decision reflects persistent global uncertainty, albeit moderating amid recent US trade-tariff agreements, and continued restrictive international financing conditions. Domestically, the June RD$ 81 billion liquidity-provision program (RD$ 40 billion disbursed to date) is expected to bolster private-sector credit as monetary transmission takes hold. Annual headline inflation eased to 3.56% in June from 3.84% in May, while core inflation moderated to 4.15% from 4.22%, both squarely within the 4.0 % ± 1.0 % target. Activity remained solid: the IMAE grew 2.4% year-to-date through June, led by agriculture, mining, manufacturing (local and free-zone) and services, and private credit expanded over 8% in July. The BCRD projects both headline and core inflation to stay within target through 2026.

The Central Bank of the Dominican Republic left its benchmark rate unchanged at 5.75% in June 2025, following 125bps in cuts since mid-2024. The decision reflects rising global uncertainty from geopolitical conflicts and volatile oil prices, as well as persistently high US interest rates amid tariff-related inflation risks. Domestically, recent liquidity measures are expected to support private sector credit as monetary policy transmission takes hold. Inflation remained within the 4.0% ± 1.0% target, with headline inflation at 3.84% and core at 4.22% in May. The central bank projects both to stay within range through 2026.

The Central Bank of the Dominican Republic kept its benchmark interest rate unchanged at 5.75% during its May 2025 meeting, following a cumulative reduction of 125 basis points since the second half of 2024. This decision reflected both global and domestic factors, including persistent global uncertainty, elevated interest rates in the US—especially on long-term instruments—and inflation that remains within the target range of 4.0% ± 1.0%. In April 2025, headline inflation stood at 3.71%, while core inflation, more closely tied to monetary policy, was 4.13%, suggesting continued price stability.The BCRD expects general and core inflation to remain within target through 2025 and 2026. It has also managed liquidity and supported financial stability, while strong exports, remittances, and foreign investment have strengthened the peso and boosted reserves.