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 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.