Dominican Republic Interest Rate

The Central Bank of the Dominican Republic lowered its benchmark interest rate by 25 basis points to 5.75% during its December 2024 meeting, following a cumulative reduction of 275 basis points since May 2023. The decision reflects favorable international conditions, including rate cuts by major central banks, easing inflationary pressures, and stable commodity prices. Annual inflation stood at 3.18% in November, remaining within the 4.0% ± 1.0% target range, while core inflation, at 3.93%, hovered near the midpoint. The Dominican economy grew by 5.1% year-to-date through November and is projected to expand by 5% in 2024, driven by robust performance in tourism, remittances, exports, and foreign investment. To bolster liquidity, the Central Bank has implemented measures, including the release of RD$35.4 billion in legal reserves and the extension of liquidity facilities, providing RD$175 billion in total financial system support.