Dominican Republic Interest Rate

The Central Bank of the Dominican Republic held its benchmark interest rate at 5.75% during its March 2025 meeting, following a cumulative reduction of 125 basis points since the last semester of 2024. Annual inflation stood at 3.56% in February, remaining within the 4.0% ± 1.0% target range for 15 consecutive months, while core inflation, at 4.21%, hovered near the midpoint. The Dominican economy expanded by 2.2% year-on-year in January and is projected to grow by 4.5% in 2025, one of the highest rates in the region, as global uncertainty eases and economic policies support domestic demand. To bolster liquidity, the Central Bank has actively managed monetary aggregates, with private sector credit growth moderating to around 8% year-on-year in March, while international reserves stood at US$14.7 billion, covering approximately five months of imports.