Central Bank maintains monetary policy rate at 5.25% in light of global economic outlook
The Central Bank of the Dominican Republic (BCRD) announced after its August 2026 monetary policy meeting that it will keep its monetary policy rate (MPR) unchanged at 5.25% per annum. The decision also ratifies the permanent facilities rates, setting the remunerated deposits (Overnight) at 4.50% and the liquidity expansion at 5.75% per annum.
This measure responds to a detailed analysis of the national economic dynamism, in the face of global uncertainty marked mainly by the conflict in the Middle East. Geopolitical tension has caused inflationary pressures due to the rise in international oil costs, a factor that monetary authorities are closely monitoring to ensure the convergence of inflation towards its target range of 4.0% ± 1.0% before the end of the year.
Economic performance and national stability
At the local level, the economy has shown robust performance. The Monthly Economic Activity Indicator (IMAE) recorded a year-on-year growth of 4.6% in July, consolidating an accumulated expansion of 4.5% in the first seven months of 2026. Key sectors such as construction, mining, financial intermediation, and tourism (hotels, bars, and restaurants) have been the pillars of this growth.
- Inflation: The year-on-year rate moderated to 5.47% in July, while core inflation remains controlled at 4.96%.
- External Sector: The Dominican peso shows an accumulated appreciation of over 7% at the end of August, supported by stability in foreign currency flows.
- International Reserves: The country has more than US$15 billion in reserves, exceeding international recommendations for import coverage.
The Dominican economy has solid fundamentals, a resilient financial system, and effective coordination between monetary and fiscal policies that allow it to navigate the complex international scenario.
Alofoke Deportes
International context and raw materials
The global landscape faces significant challenges. In the United States, the economy remains resilient with a projected growth of 2.2%, although with inflation still exceeding the Federal Reserve’s target. Meanwhile, the Eurozone maintains moderate growth of 0.7%, directly affected by the armed conflict.
Regarding raw materials, the WTI crude oil barrel has remained at high levels, reaching US$85 at the end of August. In parallel, gold has consolidated its role as a safe-haven asset in the face of market volatility, trading at US$4,500 per troy ounce.
The Central Bank of the Dominican Republic reiterated its commitment to constantly monitor the evolution of the international environment, maintaining active liquidity management to preserve macroeconomic stability and the country’s sustained growth.
