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 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.