The Central Bank of the Dominican Republic (BCRD) raised its monetary policy rate by 25 basis points to 5.50% in September 2026 as a preventive measure to preserve anchored inflation expectations and avert second-round price effects from more persistent supply shocks, while economic activity remained robust. The rate had been cut by a cumulative 50 basis points in September-October 2025 and held at 5.25% through August 2026. The BCRD raised the one-day repo rate to 6.00% and the overnight deposit rate to 4.75%, and said it would actively manage financial-system liquidity at adequate levels. Headline inflation eased to 5.13% in August and is forecast to return during the fourth quarter to the 4.0% ± 1.0% target range, while medium-term expectations remained anchored at the target midpoint. Economic activity expanded 4.5% in the first eight months and is projected to grow at around that pace in 2026, while local-currency private credit grew about 7.5% year on year in August. The Dominican peso appreciated about 6% through September, and international reserves provided around five months of import cover. The global backdrop featured higher oil and refined-fuel prices linked to the Middle East conflict, disruptions to global freight transport, adverse weather and tighter international financial conditions. The BCRD said it would continue monitoring external developments and adopt measures needed to meet the inflation target and preserve macroeconomic stability.
Central Bank of the Dominican Republic Raises Policy Rate by 25 Basis Points to 5.50%
The Central Bank of the Dominican Republic (BCRD) raised its monetary policy rate by 25 basis points to 5.50% in September 2026 to anchor inflation expectations and limit second-round effects from persistent supply shocks. Headline inflation eased to 5.13% in August and is expected to return to the 4.0% ± 1.0% target range in the fourth quarter, while 2026 economic growth is projected at around 4.5%.