SANTO DOMINGO. -The Central Bank of the Dominican Republic ( BCRD monetary policy meeting of September 2025, reduced its monetary policy interest rate (TPM) by 25 basis points , bringing it to 5.50% annually.
Central Bank of the Dominican Republic (BCRD) also lowered the rate on its permanent liquidity expansion facility (overnight repos) from 6.25% to 6.00% per annum . However, the institution decided to keep the overnight deposit rate unchanged at 4.50% per annum.
This measure was taken into consideration because, although global uncertainty , international financial conditions are becoming less restrictive, according to a press release from the monetary authority.
The Dominican Central Bank's measure comes after the US Federal Reserve (Fed) decided in the middle of last week to reduce the interest rate by 25 basis points , bringing it to 4-4.25%.
In that North American nation, growth prospects remain moderate Consensus Forecasts projecting an expansion of 1.7% in 2025. Meanwhile, inflation reached 2.9% in August, above the Fed's 2.0% target.
Meanwhile, the US labor market is showing signs of weakening, with downward revisions 25 basis points and is expected to make two more rate cuts before the end of the year.
At the national level, the decision took into account that inflation has remained within the target range of 4.0% ± 1.0 since the first half of 2023, with year-on-year inflation at 3.71% in August 2025, while core inflation , which excludes the prices of the most volatile components of the basket, stood at 4.32%, around the center of the target.
The Dominican Republic (BCRD) reported that bank interest rates have begun to decrease due to higher levels of liquidity in the financial system and as the monetary policy .
Similarly, he highlighted that private credit in national currency registered year-on-year growth of over 8.5% at the end of September and is projected to accelerate its rate of expansion to between 10 and 12% year-on-year by the end of the year.
"Additionally, there is a greater impetus in public investment , consistent with the increase in capital spending foreseen in the revised State budget for 2025," the bank indicated.
In this way, the coordination of monetary and fiscal policies is expected to contribute to the gradual recovery of the Dominican economy in the coming quarters, laying the foundations for an expansion that could be between 4.0 and 5.0% by 2026, the document points out.
