After nine months frozen by 5.75 %, the Central Bank of the Dominican Republic (BCRD), at your meeting monetary policy September 2025, reduced his interest rate of monetary policy (TPM) in 25 basic pointstaking it to 5.50 % per year.
Also, the BCRD The rate of the permanent ease of expansion of liquidity (rest a day) from 6.25 to 6.00 % per year. However, the institution decided to keep the rate of paid deposits (Overnight) in 4.50 % per year.
For this measure, it was taken into consideration that, although the global uncertaintyinternational financial conditions are becoming less restrictive, according to a press release from the monetary entity.
The measure of the Dominican Central Bank occurs after the American Federal Reserve (Fed) would decide to reduce the interest rate also in 25 basic pointstaking it to 4-4.25 %.
In that American nation the growth prospects They remain moderateprojecting an expansion of 1.7 % in 2025, according to Consensus Forecasts. On the other hand, inflation stood at 2.9 % in August, above the goal of 2.0 % of the Fed.
Meanwhile, the country’s labor market shows signs of weakening with Important reviews downward in job generation figures. Given this scenario, the FED reduced the federal fund rate in 25 basic points and it is expected that it performs two additional cuts at your rate before the end of the year.
At the national level, for the decision it was taken into account that the inflation It has been maintained since the first semester of 2023 within the target range of 4.0 % ± 1.0, placing year -on -year inflation at 3.71 % in August 2025, while the underlying inflationwhich excludes the prices of the most volatile components of the basket, it was 4.32 %, around the center of the goal.
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The reduction of 25 basic points in the TPM aims to promote more flexible monetary conditions, which contribute to energize domestic demand. In addition, 62,000 million pesos have been disbursed as of the liquidity provision program for 81,000 million approved by the Monetary Board in June, contributing to the credit channeling to the productive sectors in favorable conditions.
Reduction of interest rates
He BCRD He informed that bank interest rates have begun to decrease before higher levels of liquidity in the financial system and to the extent that the transmission mechanism of the monetary policy.
In the same way, he stressed that the private credit In national currency, it records an interannual growth of more than 8.5 % at the end of September and is projected to accelerate its expansion rate until it is between 10 and 12 % interannual at the end of the year.
“Additionally, an older one is being observed impulse in public investmentconsisting with the increase in Capital expenditure Provided in the State reformulated budget by 2025, “said the bank.
In this way, the coordination of monetary and fiscal policies is expected to contribute to the gradual recovery of the economy Dominican in the next quarter, laying the foundations for an expansion that could be located between 4.0 and 5.0 % by 2026, the document points out.
