Dominican Republic central bank holds rates and delays liquidity repayments amid Middle East oil shock

The Banco Central de la República Dominicana kept its monetary policy rate unchanged at 5.25% annual, with the one‑day repo rate at 5.75% and the overnight deposit rate at 4.50%. It also postponed the repayment of roughly RD$46 billion in previously granted liquidity facilities until January 2027, describing the move as neutral for overall liquidity and aimed at avoiding a sharp contraction of bank funding.

The bank’s analysis linked the external shock to the war in the Middle East, which has pushed international oil prices higher and added about US$900 million to the country’s energy bill for the year. Inflation rose to 5.11% in April, above the 4 % ± 1 % target, but officials expect it to fall back to around 4.5 % by year‑end. Growth remained solid at 4.1% in the first quarter, supported by strong gold exports, rising remittances, foreign direct investment and a robust tourism outlook that projects revenues above US$12.5 billion in 2026. International reserves stayed above US$15.8 billion.