Dominican Republic Maintains Key Rate at 5.75%

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.