On June 30, the Central Bank of the Dominican Republic (BCRD) held its monetary policy rate at 5.25%, citing the Dominican economy’s gradual recovery and recent inflation pressures tied to a negative supply shock from higher international oil prices, while noting that medium-term inflation expectations remain anchored at its 4.0% ± 1.0% target; the rate has been unchanged at 5.25% since October 2025 after 25 basis point cuts in September and October 2025 from 5.75%. The BCRD also left the one-day repo facility rate at 5.75% and the overnight deposit rate at 4.50%, and said it has been actively managing financial-system liquidity to help keep bank interest rates stable. Annual inflation reached 5.35% in May, while core inflation remained within the target range at 4.86%, and the central bank expects headline inflation to stay above target in the coming months before moderating in the second half of the year and returning to target in the fourth quarter; the monthly economic activity indicator rose 4.7% year on year in May, with average growth of 4.2% in January-May, and private credit in local currency was expanding by around 9%. The peso had appreciated by about 5% by end-June 2026 and international reserves stood at about USD15.8 billion, equal to 11% of GDP and around six months of imports. The central bank said the recent sharp decline in oil prices following the Middle East agreement has eased part of the external shock, but global uncertainty remains elevated, and it wil
Central Bank of the Dominican Republic2026-06-30
Central Bank of the Dominican Republic Holds Policy Rate at 5.25%
The Central Bank of the Dominican Republic kept its monetary policy rate at 5.25% on June 30, with the one-day repo facility at 5.75% and the overnight deposit rate at 4.50%, citing gradual economic recovery and inflation pressures from higher international oil prices while saying medium-term inflation expectations remain anchored at its 4.0% ± 1.0% target. Annual inflation rose to 5.35% in May and core inflation was 4.86%, with the central bank expecting headline inflation to remain above target in coming months before returning to target in the fourth quarter, while noting easing oil-price pressures, a 5% peso appreciation by end-June 2026, and reserves of about USD15.8 billion.