The Central Bank of the Dominican Republic (BCRD) held its monetary policy rate (TPM) at 5.25% in its February 2026 decision, citing higher global uncertainty linked to changes in United States trade policy, greater geopolitical tensions and food-price pressures from supply shocks, while also noting that monetary transmission has been operating efficiently and has supported more favorable financial conditions through lower bank interest rates. After cumulative 50 bp cuts in September and October 2025 from 5.75% to 5.25%, the BCRD kept the one-day repo rate at 5.75% and the overnight deposit rate at 4.50%. Annual inflation stood at 4.98% in January, around the upper limit of the 4.0% ± 1.0% target range, while core inflation was 4.89%; the central bank expects monthly inflation to moderate as supply conditions normalize and sees annual inflation converging to the center of the target range by end-2026. Economic activity expanded 3.5% year on year in January, with private credit in local currency growing above 8% in February. On the external side, the current account deficit narrowed to 1.2% of GDP in 2025 and international reserves were around USD16.1 billion in February, while the exchange rate showed relative stability with cumulative appreciation of about 4%. The BCRD also pointed to resilient United States growth, a gradual euro area recovery, and higher oil and gold prices amid geopolitical tensions, and said it will continue monitoring the economy and evaluating room to
Central Bank of the Dominican Republic2026-02-25
Central Bank of the Dominican Republic Holds Monetary Policy Rate at 5.25%
The Central Bank of the Dominican Republic kept its monetary policy rate at 5.25% in February 2026, with the one-day repo rate at 5.75% and the overnight deposit rate at 4.50%, citing higher global uncertainty, geopolitical tensions and food-price pressures despite improved domestic financial conditions after 50 bp of easing in September and October 2025. Annual inflation was 4.98% in January and core inflation 4.89%, with the central bank expecting inflation to moderate and return to the 4.0% target midpoint by end-2026.