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

In its April 2025 meeting, the Central Bank of the Dominican Republic maintained the benchmark interest rate at 5.75%. This decision follows a total reduction of 125 basis points since the latter half of 2024. As of March, annual inflation was recorded at 3.58%, comfortably within the target range of 4.0% ± 1.0% for the 16th consecutive month, while core inflation was positioned at 4.24%, close to the midpoint of this range. The Dominican economy demonstrated robust growth, expanding by 5.4% year-on-year in March, with expectations of a growth rate between 4.0% and 4.5% in 2025. This positions the country among the highest in regional growth as global uncertainties diminish and economic policies continue to stimulate domestic demand. To enhance liquidity, the Central Bank has strategically managed monetary aggregates, resulting in a moderation of private sector credit growth to approximately 8% year-on-year in April. Meanwhile, international reserves exceeded US$ 15 billion, sufficiently covering about five months of imports.