SANTO DOMINGO.– The Central Bank of the Dominican Republic (BCRD) announced that it has decided to maintain its monetary policy interest rate (MPR) at 5.50% per annum and that of the permanent liquidity expansion facility (1-day repos) at 6.00%.
The agency announced that at its monetary policy meeting in October 2026, the Central Bank of the Dominican Republic (BCRD) kept the overnight deposit rate unchanged at 4.75% per annum.
The statement from the institution explained that this decision took into consideration the persistent international uncertainty resulting from the prolonged armed conflicts, which have kept the prices of oil and its derivatives, as well as other raw materials, high.
Furthermore, it was noted that forecasting models predict that local inflation will continue to converge to the target range of 4.0% ± 1.0% towards the end of the year, in a context of inflation expectations that remain anchored to the target set in the monetary program.
Year-on-year inflation fell from 5.67% in June to 5.12% in September, and core inflation, which excludes the most volatile goods in the basket, moderated from 4.96% in June to 4.61% last month, remaining within the target range.
This inflationary dynamic has been conditioned by the implementation of subsidies by the Dominican Government, through which the increase in refined petroleum products has been partially passed on to fuel prices, the bank highlights.
The Central Bank of the Dominican Republic's forecasting system indicates that year-on-year inflation will return to the target range of 4.0% ± 1.0% during the fourth quarter of the year. Similarly, economic agents' medium-term inflation expectations are anchored at the midpoint of the target range, while short-term expectations have moderated.
However, the inflation outlook remains subject to upside risks, conditioned by the persistence of various armed conflicts and the potential impact of weather phenomena on food prices, the text clarifies.
Projections
The Central Bank of the Dominican Republic (BCRD) indicated that it will continue actively managing the liquidity of the financial system to maintain it at adequate levels. Meanwhile, private credit in local currency expanded by approximately 7.4% year-on-year at the end of September, driven primarily by financing to productive sectors.
The entity highlights that the Dominican economy has strong fundamentals, a solid financial system, and a resilient private sector which, together with coordinated monetary and fiscal policy actions, will contribute to continuing to overcome the challenging international landscape.
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