FX.co ★ Dominican Republic Holds Interest Rate at 5.75%

The Central Bank of the Dominican Republic decided to maintain its key interest rate at 5.75% during its March 2025 meeting. This decision follows a cumulative decrease of 125 basis points since the second half of 2024. As of February, annual inflation was recorded at 3.56%, remaining consistently within the target range of 4.0% ± 1.0% for the past 15 months. Core inflation was slightly higher at 4.21%, resting near the middle of the specified range. The Dominican economy experienced a 2.2% increase compared to the previous year in January and is anticipated to grow by 4.5% in 2025. This growth rate is among the highest in the region as global uncertainties diminish and supportive economic policies stimulate domestic demand. Additionally, to enhance liquidity, the Central Bank has been strategically managing monetary aggregates, with credit growth to the private sector slowing to approximately 8% year-on-year as of March. Furthermore, international reserves reached US$14.7 billion, which is sufficient to cover approximately five months of imports.