The Central Bank of the Dominican Republic (BCRD) held its annual policy rate at 5.50%, citing expected inflation convergence towards target and anchored expectations despite persistent international uncertainty, following a cut to 5.25% in October 2025 and a 25-basis-point increase in September 2026. The central bank will continue actively managing financial-system liquidity to maintain adequate levels. Annual inflation eased to 5.12% in September and is projected to return to the 4.0% ± 1.0% target range in the fourth quarter. Economic growth is forecast at around 4.5% for 2026, supported by investment and external-sector resilience, while domestic-currency private credit growth was driven mainly by lending to productive sectors. Foreign-exchange inflows supported relative exchange-rate stability, with the peso recording a cumulative appreciation through end-October. Prolonged conflicts kept oil and other commodity prices elevated, while reduced global refining capacity intensified pressures on refined-fuel prices. The BCRD flagged upside inflation risks from conflicts and potential weather-related effects on food prices and said it would monitor international developments and adopt measures as needed to meet its inflation target and preserve macroeconomic stability.
Central Bank of the Dominican Republic Holds Policy Rate at 5.50%
The Central Bank of the Dominican Republic held its policy rate at 5.50%, with annual inflation easing to 5.12% in September and projected to return to the 4.0% ± 1.0% target range in the fourth quarter. It flagged upside inflation risks from conflicts and potential weather-related effects on food prices.