Dominican Republic

Dominican Republic Monetary Policy April 2024

Dominican Republic: Central Bank of the Dominican Republic maintains rates in April

At its meeting on 30 April, the Central Bank of the Dominican Republic (BCRD) decided to keep its monetary policy interest rate (TPM) unchanged at 7.00%. The decision extended the pause on BCRD’s monetary policy loosening cycle, which began in May 2023.

The decision to maintain the interest rate was influenced by domestic factors, notably inflation, which remained within the target range of 3.0–5.0% in March. The Central Bank also considered the gradual recovery of the Dominican economy and the dynamism of private credit as a result of ongoing monetary and fiscal policy.

The Bank did not provide specific forward guidance on what the BCRD will do with interest rates in the future. However, the BCRD stated it will continue to monitor macroeconomic developments with the aim of adopting timely measures to preserve macroeconomic stability and keep inflation within the target range. Our panelists expect 25–225 basis points of rate cuts by the end of 2024, in line with the U.S. Fed’s pivot and the Bank’s aim to stimulate domestic growth. The Bank is expected to convene next at the end of May.

EIU analysts commented on the outlook:

“We believe that the BCRD will restart monetary easing in the third quarter, taking the policy rate to a terminal rate of 5.5% by end-2024. This trajectory reflects our assumption that the BCRD will want to narrow the interest-rate differential with the US; the start of monetary easing in the US in the second quarter of 2024 will support further rate cuts by the BCRD.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest