Dominican Republic Interest Rate

The Central Bank of the Dominican Republic kept its benchmark interest rate at 7% in its March meeting. This decision considered global factors such as expectations of sustained high interest rates in advanced economies and rising commodity prices. Domestically, strong economic activity and private credit growth were noted, with inflation comfortably within the target range. The bank has reduced its policy rate by 150 basis points since May 2023 and implemented liquidity provision programs to spur private credit growth. Internationally, while the U.S. economy remains resilient, the Eurozone faces economic weakness due to the Russia-Ukraine conflict. Most Latin American central banks have reduced their policy rates in response to declining inflation. Domestically, the Dominican economy continues to grow, with expectations of around 5% growth in 2024. The Central Bank will continue to monitor macroeconomic developments to preserve stability and keep inflation within target.