Central Bank of the Dominican Republic Holds Policy Rate at 5.25%

The Central Bank of the Dominican Republic held its monetary policy rate at 5.25% in April 2026, citing the Dominican economy’s gradual first-quarter recovery and inflation expectations that remain anchored to target, despite a turbulent international backdrop marked by the Middle East conflict and higher oil and other commodity prices. The rate has been unchanged at 5.25% since January 2026 after 25 bp cuts in September and October 2025 from 5.75%. The Central Bank of the Dominican Republic also left its 1-day repo rate at 5.75% and its overnight deposit rate at 4.50%. Annual inflation eased to 4.63% in March, within the 4.0% ± 1.0% target band, and the central bank said it could temporarily move above the upper bound in coming months before returning to target by year-end, while the monthly economic activity indicator rose 5.1% in March and private credit in local currency expanded around 9% year on year. On the external side, the Dominican peso had appreciated about 5.2% by end-April and reserves stood at about USD16 billion, equal to 12% of GDP and roughly six months of imports. Globally, the central bank highlighted above-target inflation in the United States and the euro area and West Texas Intermediate crude above USD100 at end-April. The Central Bank of the Dominican Republic said it will continue monitoring international conditions and take timely measures needed to support compliance with the inflation target.