Central Bank cuts its interest rate to 5.25% per year

By El Inmobiliario
November 1, 2025

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.

Likewise, the rate on the standing liquidity expansion facility (overnight repos) fell from 6.00% to 5.75% per year, while the institution kept the rate on remunerated deposits (overnight) unchanged at 4.50% per year.

A press release indicates that, for this decision, the Bank took into account that international financial conditions continue to ease as some global uncertainty factors have diminished, and that domestic inflation would remain within the target range of 4.0% ± 1.0%, according to the institution’s forecasting models.

“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.

It explains that, as the transmission mechanism of monetary policy speeds up, there has been a significant decline in interest rates compared to their peaks over the last year. In fact, the short-term interbank rate fell from 14.27% to 6.50% in October (a decrease of 777 basis points).

Similarly, the average weighted deposit rate of multiple banks dropped from 10.34% to 6.40% in October 2025 (394 basis points), while the average weighted lending rate fell from 16.09% to 13.98% (211 basis points).

The BCRD emphasized that the Dominican economy has strong fundamentals and a resilient productive sector, reflected in a better perception of country risk compared to the Latin American average and other emerging economies.