31.10.202520:24:05UTC+00Dominican Republic Slashes Rate

In October 2025, the Central Bank of the Dominican Republic decided to lower its benchmark interest rate by 25 basis points to 5.25%. This decision comes in response to diminishing global uncertainties and an increase in flexibility regarding international financing conditions. On the domestic front, the liquidity provision program initiated in June, amounting to RD 81 billion, has successfully distributed RD 68 billion thus far. This monetary policy is anticipated to enhance private-sector credit as it continues to take effect. As of September, the Dominican Republic recorded an annual headline inflation rate of 3.76%, with core inflation at 4.35%, both comfortably within the target range of 4.0% ± 1.0%. Economic activity remains robust, evidenced by a year-to-date growth of 2.2% through September, driven by sectors such as agriculture, mining, manufacturing both locally and in free zones, as well as services. Additionally, private credit saw an expansion of approximately 8.5% in October. The Central Bank projects that both headline and core inflation will remain within the target range through 2026.