Dominican Republic Holds Interest Rate at 5.75%

2025-07-31 20:38 By Felipe Alarcon 1 min. read

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.



News Stream
Dominican Republic Slashes Rate
The Central Bank of the Dominican Republic reduced its benchmark rate by 25 basis points to 5.25% in its October 2025 meeting, reflecting easing global uncertainty and more flexible international financing conditions; domestically, the June RD 81 billion liquidity provision program has seen RD 68 billion disbursed to date and is expected to bolster private-sector credit as monetary transmission takes hold; annual headline inflation was 3.76% in September while core inflation stood at 4.35%, both squarely within the 4.0% ± 1.0% target; activity remained solid with the IMAE registering 2.2% growth year to date through September led by agriculture, mining, manufacturing local and free-zone and services, and private credit expanded around 8.5% in October; the BCRD projects both headline and core inflation to stay within target through 2026.
2025-10-31
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.
2025-07-31
Dominican Republic Holds Interest Rate at 5.75% in June
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.
2025-06-30