Dominican Republic maintains its monetary policy rate at 5.25% annually

The Central Bank of the Dominican Republic has decided to keep its monetary policy rate unchanged at 5.25% annually for the eighth consecutive month. This decision reflects the gradual recovery observed in the local economy, according to a statement released Tuesday by the issuing institution.

Alongside the main policy rate, the rate for the permanent liquidity expansion facility (overnight repos) remains at 5.75% annually, and the overnight deposit rate stays at 4.50% annually. The Central Bank also noted that inflation, despite reaching 5.35% in May due to rising fuel costs, is still within the target range of 4.0% ± 1.0%. Forecasts suggest inflation may remain above the target range in the coming months but is expected to moderate in the second half of 2026, influenced by falling international oil prices.

Despite these positive indicators, the economic outlook remains subject to significant uncertainty, with risks associated with the conflict in the Middle East. The monthly economic activity index (IMAE) showed a year-on-year growth of 4.7% in May, bringing the average increase for the first five months of the year to 4.2%. If this performance continues, the Dominican economy is projected to grow between 3.5% and 4% this year, bolstered by recovering investment and the resilience of the external sector.