The Central Bank of the Dominican Republic (BCRD) held its policy rate at 5.25% in August, citing robust domestic activity and inflation that is expected to converge to target despite oil-related pressures from the Middle East conflict. Over the past year, the BCRD cut the rate by 25 basis points in both September and October 2025, from 5.75% to 5.25%, and has held it since. The one-day repo facility remained at 5.75% and the overnight deposit rate at 4.50%, while the central bank continued actively managing financial-system liquidity to support stable lending rates. Annual inflation eased to 5.47% in July and is forecast to return to the 4.0% ± 1.0% target range in the fourth quarter, with expectations anchored, while economic growth is projected at around 4.5% in 2026 and private local-currency credit rose about 8% year on year. The Dominican peso had appreciated by more than 7% by end-August, and international reserves exceeded USD 15 billion, equivalent to about five months of imports. Globally, the prolonged Middle East conflict has kept oil and refined-fuel prices elevated and sustained inflationary uncertainty. The BCRD said it will continue monitoring international conditions and their domestic impact while maintaining its commitment to the inflation objective and macroeconomic stability.
2026-08-31Central Bank of the Dominican Republic
Central Bank of the Dominican Republic Holds Policy Rate at 5.25%
The Central Bank of the Dominican Republic held its policy rate at 5.25% in August, citing robust domestic activity and inflation expected to return to the 4.0% ± 1.0% target range in the fourth quarter despite oil-related pressures. Annual inflation eased to 5.47% in July, while economic growth is projected at around 4.5% in 2026.