Central Bank keeps its interest rate at 5.25% annually

Santo Domingo.- Dominican Republic decided to maintain its interest rate at 5.25% annually, after analyzing the recent increase in “uncertainty” global in the commercial policy of the United States, as well as the “inflation” recorded in the supply of food prices. The Dominican Central Bank issued this Wednesday a document in which it reported that it took into account, in addition, that the transmission mechanism of the national monetary policy has been operating efficiently, which has contributed to favorable financial conditions through lower bank interest rates.

You may be interested in: Central Bank of the Dominican Republic

The rate for the permanent liquidity expansion facility (1-day Repos) remains at 5.75% per annum, while the rate for remunerated deposits (Overnight) continues at 4.50% per annum, the institution added. “The U.S. economy remained resilient in 2025, with an expansion of 2.2%; while projections for 2026 were revised upwards to 2.6%, according to the annual Consensus Forecasts report,” the bank said. He highlighted that the US labor market showed signs of stabilization in January, while inflation moderated to 2.4%, although it remains above the 2.0% target. “In this context, analysts anticipate that cuts in the federal funds interest rate would resume in the middle of this year (in the United States),” the information continued. In the national environment, the Central Bank said that the high prices that gold has reached in the international market contributed to a year-on-year increase of 60.9% during the year 2025 in exports of that metal by the Dominican Republic. Likewise, at the local level, inflation has been subject to the impact of climatic phenomena, exogenous to monetary policy, which affected food prices. In that order, it was recalled that the year-on-year inflation stood at 4.98% in January, being around the upper limit of the 4.0% ± 1.0% target range. The Central Bank also assured that core inflation remains within the target range, reaching 4.89% year-on-year in January, affected by second-round effects associated with the increase in food prices. “It is important to highlight that the Dominican economy has strong fundamentals and a resilient productive sector, which is reflected in a low level of country risk perception,” said the official document.