SANTO DOMINGO - The Central Bank of the Dominican Republic ( BCRD monetary policy meeting of July 2025, decided to maintain its monetary policy interest rate
Likewise, the rate of the permanent liquidity expansion facility ( 1-day Repos ) remains at 6.25% per annum, while the rate of remunerated deposits (Overnight ) continues at 4.50% per annum.
According to a press release from the organization, this measure was taken into consideration given the continued international financial conditions and persistent global uncertainty.
However, uncertainty levels have recently begun to moderate following agreements reached between the United States of America (USA) and some of its main trading partners, which will involve smaller increases in their tariff rates compared to what was initially presented in April and could lead to better prospects for international trade.
tariffs were reduced relative to those previously announced for Vietnam from 46% to 20%, Indonesia from 32% to 19%, South Korea from 25% to 15%, Japan from 24% to 15% and the European Union from 20% to 15%.
At the national level, it was taken into account that inflation has remained within the target range of 4.0% ± 1.0% for more than two years.
Indeed, inflation was 3.56% in June 2025, while core inflation, which excludes the prices of the most volatile components of the basket, stood at 4.15% in June, around the center of the target.
The BCRD 's forecasting models indicate that headline and core inflation will remain within the target range of 4.0% ± 1.0% during 2025 and 2026, under an active monetary policy scenario.
Faced with a turbulent and highly volatile international landscape, the Central Bank of the Dominican Republic (BCRD) monetary policy rate unchanged during the first seven months of 2025, while adopting macroprudential measures with the aim of strengthening financial stability.
Furthermore, in order to limit the impact of adverse external conditions on the monetary policy transmission mechanism, in June the Monetary Board authorized a liquidity provision program of approximately 81 billion pesos, of which around 40 billion pesos have been disbursed to date, facilitating the channeling of credit to productive sectors under more favorable financial conditions.
The global economy
In the international environment, the growth of the US economy continues to be moderate, registering a year-on-year expansion of 2.0% in April-June 2025, with a projected growth of 1.9% for the end of the year according to the latest World Economic Outlook of the International Monetary Fund (IMF).
On the other hand, inflation was 2.7% in June, remaining above the 2.0% target.
In this context, the Federal Reserve maintained the benchmark interest rate in the 4.25–4.50% annual range at its July meeting. Given this scenario, market analysts have delayed their expectations for cuts to the federal funds rate, anticipating that they will resume in the third quarter.
In the Eurozone, economic activity expanded by 1.4% year-on-year during the second quarter of 2025, with growth projected at 1.0% for the year according to the IMF.
Meanwhile, year-on-year inflation stood at 2.0% in June 2025, within the European Central Bank (ECB) target range. Given this outlook, the ECB maintained its monetary policy rate at 2.00% annually in July, with a further 25 basis point cut expected for the remainder of the year.
- In Latin America , growth prospects point to a regional expansion of 2.2% by 2025, according to the IMF.
However, given the high level of uncertainty , most central banks in the region kept their monetary policy interest rates unchanged. Meanwhile, the authorities in Costa Rica, Chile, and Uruguay decided to reduce their benchmark rates by 25 basis points at their July meeting.
Regarding commodities, the price of West Texas Intermediate (WTI) crude oil has moderated from the highs seen in June, although volatility persists due to geopolitical tensions. Thus, WTI settled at around $69 per barrel at the end of July.
On the other hand, the price of gold remains around $3,300 per troy ounce, as it is used as a store of value in a complex and changing international landscape.
