Policy Interest Rate in Dominican Republic
The Key Policy Rate ended 2022 at 8.50%, up from the 3.50% end-2021 value and up from the reading of 6.25% a decade earlier. For reference, the average Key Policy Rate in Central America and Caribbean was 6.40% at the end of 2022. 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 2017 to 2023.
Source: Macrobond.
Dominican Republic Interest Rate Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Key Policy Rate (%, eop) | 4.50 | 3.00 | 3.50 | 8.50 | 7.00 |
BCRD holds rates in June
At its meeting on 30 June, the Central Bank of the Dominican Republic (BCRD) kept its monetary policy interest rate (TPM) at 7.00%, 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 rose to 3.2% in May, reentering the Bank’s 3.0-5.0% target range. Moreover, both headline and core inflation are expected to remain within the target range for the remainder of this year. The Bank also took into account the recovery of the Dominican economy and the dynamism of private credit. Lastly, it noted that higher-for-longer interest rates in the U.S. and elevated commodity prices further necessitated the hold.
The Bank did not provide specific forward guidance. However, it restated that it would continue to monitor macroeconomic developments with the aim of adopting timely measures to preserve macroeconomic stability and keep inflation within the target range. Our Consensus is for about 75 basis points of further rate cuts this year, in line with the U.S. Fed’s pivot. That said, the spread of panelist forecasts is between 25–125 basis points of rate cuts. The Bank is expected to convene again in late July.
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.
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