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Wednesday, January 14, 2026
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Home Marry Your House Finance The Central Bank cuts its interest rate to 5.25% annually

The Central Bank cuts its interest rate to 5.25% per year

SANTO DOMINGO. -The Central Bank of the Dominican Republic ( BCRD October monetary policy meeting monetary policy interest rate (TPM) by 25 basis points, taking it from 5.50 to 5.25% annually.

Likewise, the rate of the permanent liquidity expansion facility (One-day Repos) fell from 6.00 to 5.75% per year, while the agency keeps the rate of remunerated deposits ( Overnight ) unchanged at 4.50% per year.

A press release indicates that this measure took into account that international financial conditions continue to ease as some factors of global uncertainty have dissipated, and that local inflation would remain within the target range of 4.0% ± 1.0%, according to the institution's forecasting models.

"In a context of low inflationary pressures , the bank reduced the Monetary Policy Rate (MPR) by 50 basis points cumulatively since September, with the aim of fostering monetary conditions that contribute to boosting domestic demand," the body highlights.

He explains that as the monetary policy interest rates has been observed relative to their peaks reached in the last year. Indeed, the interbank rate fell from 14.27% to 6.50% in October (777 basis points).

Likewise, the average passive rate of multiple banks decreased from 10.34 to 6.40% in October 2025 (394 basis points); while the average active rate fell from 16.09% to 13.98% (211 basis points).

The (BCRD) highlighted 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.

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