Dominican Republic

Dominican Republic Interest Rate

Dominican Republic Interest Rate

Key Policy 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: Central Bank of Dominican Republic.

Dominican Republic Interest Rate Data

2018 2019 2020 2021 2022
Key Policy Rate (%, eop) 5.50 4.50 3.00 3.50 8.50

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.”

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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