Dominican Republic Interest Rate

The Central Bank of the Dominican Republic held its benchmark interest rate at 5.75% during its February 2025 meeting, following a cumulative reduction of 275 basis points since May 2023. Annual inflation stood at 3.32% in January, remaining within the 4.0% ± 1.0% target range for 14 consecutive months, while core inflation, at 4.03%, hovered near the midpoint. The Dominican economy grew by 5.0% in 2024 and is projected to expand by 4.5% in 2025, driven by robust performance in services, manufacturing, and free trade zones. 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, alongside an additional RD$68 billion in liquidity extensions to sustain credit growth.