In its March 2026 decision, the Central Bank of the Dominican Republic held its monetary policy rate at 5.25% as it weighed the escalation of the conflict in the Middle East, higher global uncertainty and commodity prices against a gradual recovery in domestic activity and inflation expectations that remain anchored to target; after cutting by a cumulative 50 basis points in September and October 2025, the rate has been held at 5.25% since then. The 1-day repo rate remained at 5.75% and the overnight deposit rate at 4.50%. Annual inflation eased to 4.67% in February and core inflation stood at 4.76%, both within the 4.0% ± 1.0% target range, while the central bank forecasts inflation will stay affected by short-term supply shocks from higher oil prices but close 2026 within target; the monthly economic activity index grew 3.5% in January and 3.9% in February, 2026 growth is seen at 3.5%-4.0%, and private credit in local currency was expanding around 9% year on year. The Dominican peso had appreciated by nearly 4% by March 2026 and reserves were around USD16.0 billion, equal to 12% of GDP and about six months of imports. The central bank highlighted a roughly 50% rise in West Texas Intermediate crude in March to above USD100 a barrel, weaker euro zone prospects, and the Federal Reserve’s March decision to hold rates at 3.50%-3.75% as key external factors. The central bank said it will keep monitoring international conditions and take timely measures as needed to support achiev
Central Bank of the Dominican Republic2026-03-31
Central Bank of the Dominican Republic Holds Policy Rate at 5.25%
In its March 2026 decision, the Central Bank of the Dominican Republic kept the monetary policy rate at 5.25%, with the 1-day repo rate at 5.75% and the overnight deposit rate at 4.50%, as it balanced higher Middle East-related uncertainty and oil prices against recovering domestic activity and inflation expectations anchored to target. Annual inflation was 4.67% in February and core inflation 4.76%, both within the 4.0% ± 1.0% target range, and the central bank said it expects 2026 inflation to close within target while continuing to monitor global conditions and act as needed.