The Central Bank of the Dominican Republic (BCRD) held its monetary policy rate at 5.25% in July, citing robust domestic activity and oil-driven inflation pressures while forecasting inflation to return to its 4.0% ± 1.0% target range in the fourth quarter. The BCRD has kept the rate unchanged since cutting it by a cumulative 50 basis points in September and October 2025. The one-day repo rate 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 rose to 5.67% in June, while economic growth in 2026 was projected near the upper end of a 4.0%-4.5% range and local-currency private credit expanded by around 8%. Foreign-currency inflows supported an approximately 8% cumulative appreciation of the Dominican peso by end-July, while reserves provided about six months of import cover. Renewed Middle East conflict increased global uncertainty and lifted West Texas Intermediate crude to about USD 86 per barrel at end-July from USD 70 at end-June. The BCRD said it would continue monitoring international conditions and their potential economic impact, reaffirming its commitment to the inflation objective and macroeconomic stability.
Central Bank of the Dominican Republic2026-07-31
Central Bank of the Dominican Republic Holds Policy Rate at 5.25%
The Central Bank of the Dominican Republic (BCRD) held its monetary policy rate at 5.25% in July, citing robust domestic activity and oil-driven inflation pressures, with inflation expected to return to its 4.0% ± 1.0% target range in the fourth quarter. Annual inflation reached 5.67% in June, while 2026 growth was projected near the upper end of the 4.0%-4.5% range.