SANTO DOMINGO.- Active interest rates, that is, those that banks apply to loans, reflected a reduction of 140 basis points, going from 14.99% to 13.59%, in the last eight months, according to the Central Bank of the Dominican Republic in its opinion articles forum Página Abierta.
According to the analysis of the agency, interbank interest rates of 1 to 7 days, those with the most immediate reaction to liquidity measures, went from 13.19% to 5.80% from May 2025 to January 2026, for a reduction of 739 basis points.
It states that when considering the set of terms, the interest rates of interbank operations went from 11.54% to 6.95% from May 2025 to January 2026, registering a decrease of 459 basis points.
The entity states that similarly, the passive interest rates that multiple banks pay to depositors were reduced by 370 basis points, going from 9.63% to 5.93% in the period cited, and the passive rates of savings and loan associations were reduced from 8.73% to 6.39% in the same period of time, consolidating a decrease of 235 basis points.
Analyzing the various economic sectors
Analyzing the various economic sectors, the technicians of the Department of Regulation and Financial Stability indicate that in the period of May 2025-January 2026, the active rate for wholesale and retail trade operations fell from 14.84% to 13.06%, decreasing by 178 basis points.
It notes that in the case of the manufacturing sector, the active rate was lower by 166 basis points, going from 13.15% to 11.49%.
They also indicate that credit operations to the construction sector experienced a reduction of 205 basis points in the interest rate, going from 14.77% to 12.72%.
They maintain that, in a similar magnitude, the active rate for financing to the agricultural sector went from 15.94% to 13.92%, observing a downward adjustment of 202 basis points.
Regarding the interest rates observed for loans granted by multiple banks for personal consumption and home acquisition purposes, similar decreases were recorded.
Specifically, the interest rate on consumer loans fell from 20.18% to 16.23%, reflecting a decrease of 395 basis points, while the interest rate for mortgage loans was reduced by 21 basis points, dropping from 12.14% to 11.93% in the same period.
The analysis highlights that mortgage financing operations bysavings and loan associations saw their interest rate decrease from 14.37% to 12.96%, a reduction of 141 basis points.
Reduction in various line items
The Central Bank states that the measures approved by the Monetary Board and those adopted by the institution have achieved a generalized reduction in interest rates in the money and credit markets.
This applies both to the different types of operations, as well as to the main economic sectors and subsectors of the financial system.
He explains that these decreases are also reflected in the particular context of various financial intermediation entities, as expressed by the CEO of Banco Popular, Christopher Paniagua, regarding the lower interest rates with which said entity has been operating.
In addition to the announced prospects of even lower interest rates that the bank will implement during 2026 for the economic sectors it targets.
Downward trend in 2026
In analyzing the behavior of active and passive interest rates, the Central Bank's technical staff project that going forward, as the monetary policy transmission channels continue to operate and interest rates in global financial markets adopt a downward path in 2026, the downward trend in local interest rates would be maintained, in a context where inflation would remain within its target range of 4% ± 1%, fostering an environment of certainty favorable to the dynamism of the economic sectors and the stability of the financial system.
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