Dominican Republic

Dominican Republic Monetary Policy May 2024

Dominican Republic: Central Bank of the Dominican Republic leaves rates unchanged in May

At its meeting on 31 May, the Central Bank of the Dominican Republic (BCRD) decided to maintain its monetary policy interest rate (TPM) at 7.00%, while also keeping the permanent liquidity expansion facility rate (1-day Repos) at 7.50% and the remunerated deposit rate (Overnight) at 5.50%.

The key factors influencing the BCRD’s decision included inflation, which fell to 3.0% in April, hitting the floor of the Bank’s 3.0-5.0% target range. Additionally, the Bank took into account the recovery of the Dominican economy and the dynamism of private credit, in a context where both general and underlying inflation are expected to remain within the target range for the remainder of this year. Lastly, the authorities noted that higher-for-longer interest rates in the U.S. and elevated commodity prices further necessitated the hold.

The text does not provide specific forward guidance on what the Central Bank of the Dominican republic will do with interest rates in the future, stating only that the BCRD will continue to monitor macroeconomic developments with the aim of adopting timely measures necessary to preserve macroeconomic stability and contribute to maintaining inflation within the target range.

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