Policy Interest Rate in Dominican Republic
The policy interest rate ended 2024 at 6.00%, compared to the end-2023 value of 7.00% and the figure a decade earlier of 6.25%. It averaged 5.45% over the last decade. For more interest rate information, visit our dedicated page.
Dominican Republic Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Dominican Republic from 2024 to 2023.
Source: Macrobond.
Dominican Republic Interest Rate Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Policy Interest Rate (%, eop) | 4.50 | 3.00 | 3.50 | 8.50 | 7.00 |
Central Bank cuts rates in November
Central Bank continues monetary policy loosening cycle: At its meeting on 29 November, the Central Bank of the Dominican Republic (BCRD) decided to reduce its policy rate by 25 basis points to 6.00%. This brought overall rate cuts to 250 basis points since May 2023.
Within-target inflation and slowing credit growth motivate the cut: The key domestic factors influencing the BCRD's decision included inflation, which has remained at the lower end of the 3.0–5.0% target range throughout the year, and the recent deceleration of private credit. Additionally, the BCRD took into account global commodity prices, geopolitical uncertainty and recent interest rate cuts by major central banks. Moreover, the Bank forecasts that both headline and core inflation will remain within the target range going forward.
BCRD to continue cutting rates in 2025: The Bank stated that it would continue to adopt measures to “preserve macroeconomic stability and contribute to keeping inflation within the target range”. Our panel anticipates about 100 basis points of further easing by end-2025. Upside risks to interest rates include unanticipated depreciation of the peso, softer rate cuts by the U.S. Fed and commodity price spikes, while a key downside risk is weaker-than-anticipated GDP growth.
Panelist insight: Analysts at the EIU commented: “We believe that the BCRD will […] resume easing in mid-2025, resulting in a terminal rate of 5% (below our estimated neutral rate of 6-7%), based on our assumption that the BCRD will want to narrow the interest-rate differential with the US. […] If the US keeps its interest rates higher for longer, the Dominican peso would weaken by more than we expect, lifting import prices.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Dominican interest rate projections for the next ten years from a panel of 9 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Dominican interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Dominican interest rate projections.
Want to get access to the full dataset of Dominican interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
-
Kazakhstan: Central Bank stands pat again in June Rates remain at some of the highest levels in recent history as expected: At its meeting on 5 June, the... -
Euro Area: ECB decreases rates in June Central Bank extends monetary policy easing cycle: At its meeting on 4–5 June, the Governing Council decided to lower its... -
Ukraine: National Bank of Ukraine keeps policy rate steady in June Central Bank decision: At its meeting on 5 June, the National Bank of Ukraine (NBU) decided to leave its key... -
Poland: Central Bank leaves rates unchanged in June Bank pauses easing cycle: At its meeting on 3–4 June, the Central Bank decided to keep the reference rate at... -
Canada: Bank of Canada keeps rates steady in June Latest bank decision: At its meeting on 4 June, the Bank of Canada kept its target for the overnight rate... -
New Zealand: Central Bank decides to decrease rates in May Latest bank decision: At its meeting on 28 May, the Central Bank agreed to reduce the Official Cash Rate (OCR)... -
Hungary: Central Bank leaves rates unchanged in May Rates remain on hold as expected: At its meeting on 27 May, the Central Bank decided to leave the base...