Dominican Republic Holds Interest Rate at 5.75%

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.