Spanish
Santo Domingo.- The Central Bank of the Dominican Republic reported this Friday that it maintained its monetary policy interest rate at 5.75% per annum, the permanent liquidity expansion facility rate (Repos at 1 day) at 6.25% per annum, and the remunerated deposit rate (Overnight) at 4.50% per year.
The organization stated in a press release that these measures are due to restrictive international financial conditions, global uncertainty associated with new tariff policies, and geopolitical conflicts.
In the national sphere, it was taken into account that inflation has remained within the target range of 4.0% ± 1.0% since the first half of the year.
You can also read: Dominican economy registers 2.9% expansion in July
The year-on-year inflation was 3.40% in July, while core inflation, which excludes the prices of the most volatile components of the basket, such as some mass consumption products and fuels, stood at 4.19%. "It is important to highlight that the Dominican economy has strong fundamentals and a resilient productive sector, which are reflected in a better perception of country risk compared to the average of Latin America and other emerging economies," stated the governing body of Dominican financial policy. The Central Bank stated, on the other hand, that, in an international context of high volatility and high interest rates, it decided to keep its monetary policy rate unchanged during the first eight months of 2025, while "macroprudential" measures were adopted with the aim of strengthening financial stability. In the international environment, the growth of the U.S. economy in the second quarter of the year was revised upwards to 3.3% annualized quarterly, the institution assured. However, the growth prospects for this economy remain moderate, with an expansion of 1.6% projected in 2025, according to the consultancy Consensus Forecasts. In Latin America, according to the Central Bank, growth prospects remain moderate, with a regional expansion of 2.1% expected for 2025."However, given the high global uncertainty, most of the region's central banks kept their monetary policy interest rates unchanged," the statement added.
