Spanish
Santo Domingo.- The Central Bank of the Dominican Republic announced this Tuesday that it is maintaining its monetary policy interest rate (MPR) at 5.25% per annum, after taking into consideration the levels of global uncertainty and recent inflationary pressures, mainly associated with the impact of climatic phenomena on food prices.
In a statement, the Dominican central bank also explained that the rate of the permanent liquidity expansion facility (1-day Repos) remains at 5.75% per annum, while the rate on remunerated deposits (Overnight) continues at 4.50% per annum.
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The BCRD's forecasting system indicates that, although local inflation would continue to be affected in the short term by the effects of climate shocks, it is expected that their impact will gradually dissipate in the first part of the year 2026. Regarding the external sector, the Central Bank said it expects foreign currency-generating activities to maintain their dynamism with revenues of about $46.8 billion this year, supported by the good performance expected for exports, tourism, and remittances. In that sense, a current account deficit of 2.4% of GDP is projected for 2025, which would be comfortably covered by foreign direct investment, estimated at about 4,900 million dollars. According to the information, the relative stability of the exchange rate is maintained and international reserves would be located at the end of the year above 14.55 billion dollars, equivalent to more than 11% of GDP and 5 months of imports, exceeding the metrics recommended by the International Monetary Fund (IMF).
