Dominican Republic Central Bank Holds Rate at 5.25% Amid Inflation and Oil Price Surge

The Central Bank of the Dominican Republic kept its policy interest rate unchanged at 5.25% per annum. Inflation for April reached 5.11%, exceeding the bank’s target range, while higher global oil prices linked to the Middle‑East conflict added pressure to the economy. The bank also postponed the withdrawal of RD$46 billion in liquidity, originally slated for removal from the financial system, pushing the schedule to 2027. Officials noted that the country follows the monetary trilemma: it maintains a flexible exchange rate and open capital flows, allowing the central bank to set rates independently, but it cannot simultaneously fix the exchange rate, control capital flows and retain full policy autonomy. The decision aims to balance inflation control with credit availability and economic growth.