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
Dominican Republic Interest Rate Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Key Policy Rate (%, eop) | 4.50 | 3.00 | 3.50 | 8.50 | 7.00 |
Central Bank lowers interest rates in September
BCRD continues easing cycle: At its meeting on 30 September, the Central Bank of the Dominican Republic (BCRD) decided to reduce its policy rate by 25 basis points to 6.50%. This brought overall rate cuts to 200 basis points since the Bank started loosening its monetary policy in May 2023.
Global and domestic factors behind latest cut: In its decision, the BCRD took into account lower commodity prices and recent rate cuts by the major central banks of advanced economies; moreover, it noted that the Dominican economy has performed strongly—with private-sector credit growth robust—and that inflation has remained within its 3.0–5.0% target corridor so far this year.
Cooling growth and soft inflation to bring forth further rate reductions: Looking ahead, the BCRD stated that it will continue to monitor the evolution of the economy, adopting the necessary measures to secure macroeconomic stability and within-target inflation. Accordingly, as our Consensus is for GDP growth to cool in H2 2024 and for inflation to remain within target, our panelists foresee between 25–150 basis points of additional rate cuts before year-end and further monetary policy easing next year. Stronger-than-expected rises in inflation and commodity prices pose upside risks.
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 6 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.
Latest Global Monetary Policy News
-
200 basis point hike surprises markets: At its meeting on 25 October, the Central Bank of the Russian Federation (CBR)...
-
Canada: Bank of Canada decreases rates in October
Latest bank decision: At its meeting on 23 October, the Bank of Canada reduced its target for the overnight rate... -
Hungary: Central Bank leaves rates unchanged in October
Bank holds, as expected: At its meeting on 22 October, the Monetary Council of the National Bank of Hungary (MNB)... -
Philippines: Central Bank decides to decrease rates in October
Latest bank decision: At its meeting on 17 October, the Central Bank decided to reduce the Target Reverse Repurchase (RRP)... -
Egypt: Central Bank of Egypt holds fire again in October
Fourth hold in a row anticipated by markets: At its meeting on 17 October, the Monetary Policy Committee of the... -
Euro Area: ECB decreases rates in October
Second consecutive cut meets market expectations: At its meeting on 17 October, the European Central Bank (ECB) decided to lower... -
Costa Rica: Central Bank cuts rates in October
BCCR cuts again: At its meeting on 17 October, the Central Bank of Costa Rica (BCCR) decided to reduce the...