Central Bank cuts its interest rate to 5.25% per year

The Central Bank of the Dominican Republic (BCRD) highlighted that the Dominican economy has strong fundamentals and a resilient productive sector. (External source).
SANTO DOMINGO. – The Central Bank of the Dominican Republic (BCRD), in its October monetary policy meeting, reduced its Monetary Policy Rate (MPR) by 25 basis points, bringing it down from 5.50% to 5.25% per year.

Key policy moves:

  • Standing liquidity expansion facility (overnight repos): 6.00% → 5.75% per year

  • Remunerated deposits (overnight): unchanged at 4.50% per year

Why the BCRD made this decision: The Bank cited easing international financial conditions as some global uncertainty factors diminished, and projected that inflation would remain within the target range of 4.0% ± 1.0%, according to its forecasting models.
Highlighted quote: “In a context of low inflationary pressures, the Bank reduced the MPR by a cumulative 50 basis points since September, with the aim of fostering monetary conditions that help boost domestic demand,” the institution stressed.

Market impact: rates coming down: The BCRD noted that as monetary policy transmission speeds up, interest rates have fallen significantly from last year’s peaks.

  • Short-term interbank rate: 14.27% → 6.50% (down 777 bps)

  • Avg. weighted deposit rate (multiple banks): 10.34% → 6.40% (down 394 bps)

  • Avg. weighted lending rate: 16.09% → 13.98% (down 211 bps)

Broader outlook: The BCRD emphasized strong fundamentals and a resilient productive sector, reflected in improved country risk perception versus the Latin American average and other emerging economies.

By El InmobiliarioNovember 1, 2025

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