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[BUSINESS] · Dominican Republic · 18 sources

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Dominican Republic Central Bank raises interest rate to 5.50%

The Central Bank of the Dominican Republic (BCRD) has increased its monetary policy rate by 25 basis points, raising it from 5.25% to 5.50% per annum. This decision, made during its September 2026 meeting, marks the first rate hike in nearly a year. The move also adjusted the liquidity expansion rate (1-day Repos) to 6.00% and the overnight deposit rate to 4.75%.

The BCRD characterized the hike as a preventive measure to anchor inflation expectations and mitigate second-round effects on prices. The bank cited several rising inflationary risks, including increased oil and derivative prices driven by conflict in the Middle East, global shipping disruptions, and adverse weather conditions. Additionally, international financial conditions have become more restrictive, mirroring recent actions by the U.S. Federal Reserve and the European Central Bank.

While Dominican inflation showed signs of gradual convergence—dropping from 5.67% in June to 5.13% in August—it remains above the target range of 4.0% ± 1.0%. Core inflation has moderated to 4.76%, staying within the target interval. The bank expects general inflation to return to the target range during the fourth quarter of 2026.

Entities

Andrés Marranzini Grullón · Asociación Dominicana de Empresas Turísticas Inmobiliarias · Banco Central de la República Dominicana · Central Bank of the Dominican Republic · Dominican Republic · European Central Bank · Federal Reserve · Henry Molina · Kevin Warsh · República Dominicana · United States

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