Latest bank decision: At its meeting on 30 July, the Bank of Canada kept its target for the overnight rate...
Policy Interest Rate in Dominican Republic
The Policy Interest Rate (%, eop) ended 2024 at 6.00%, down from the 7.00% end-2024 value and down from the reading of 6.25% a decade earlier. For reference, the average interest rate in Central America and Caribbean was 4.95% at end-2024. For more information on interest rate, 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 of the Dominican Republic leaves rates unchanged in June
June sees sixth hold for the year: At its meeting on 30 June, the Central Bank of the Dominican Republic (BCRD) decided to maintain its policy rate at 5.75% for the sixth consecutive meeting since January.
Goldilocks inflation and solid GDP growth drive hold: The key domestic factors influencing the BCRD's decision included the steadying of inflation within the target range of 3.0–5.0% over the last two years, with annual inflation at 3.8% in May and core inflation, which excludes the most volatile components of the consumer price basket, at 4.2% in the same month. Moreover, the economy’s robust performance so far this year, along with recent BCRD measures to boost liquidity and thereby stimulate private sector credit, made a rate cut unnecessary.
Panelists still see cuts on the horizon: The Central Bank did not provide specific forward guidance. Our panelists now expect the policy rate to end 2025 between 25–75 basis points below current levels, though one panelist expects rates to remain unchanged. A weaker-than-expected domestic economy poses a downside risk to the policy rate, while higher-for-longer U.S. interest rates are an upside risk.
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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