Latest bank decision: At its meeting on 15 May, the Central Bank decided to lower the target for the overnight...
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 2024 to 2023.
Source: Macrobond.
Dominican Republic Interest Rate Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%, eop) | 3.00 | 3.50 | 8.50 | 7.00 | 6.00 |
Central Bank holds rates for fourth consecutive meeting in April
Loosening cycle remains paused: At its meeting on 30 April, the Central Bank of the Dominican Republic (BCRD) decided to maintain its monetary policy interest rate at 5.75%. The hold was the fourth consecutive since the beginning of this year.
Solid inflation and GDP growth outlook drives hold: In justifying its decision to hold rates instead of lowering them, the BCRD said it expected headline and core inflation to remain within its 3.0–5.0% target range through 2026. Regarding economic activity, the BCRD stated that it expects the economy to grow around 4.0–4.5% in 2025, among the highest in the region, meaning there was no rush to lower interest rates.
Forward guidance remains open-ended: The Central Bank did not provide specific forward guidance. Our panelists expect the policy rate to end 2025 between 25–100 basis points below current levels. A weaker-than-expected domestic economy plus further strengthening of the currency supported by higher good exports, remittances and foreign direct investment in the wake of higher global trade uncertainty pose downside risks to rates. The Central Bank will reconvene on 29 May.
Consensus Forecasts and Projections for the next ten years
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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