BCRD keeps its policy rate at 5.25% per year and projects economic growth between 3.5% and 4.0% in 2026

DOMINICAN REPUBLIC - In Brief 31 Mar 2026 by Magdalena Lizardo
In light of the increased global uncertainty associated with the escalation of the war in the Middle East, the Central Bank decided to keep the policy interest rate unchanged at 5.25% per year. The rate on the permanent liquidity expansion facility (1-day repos) remains at 5.75%, while the rate on remunerated deposits (overnight) continues at 4.50% per year. The Central Bank reported that economic activity grew by 3.9% in February 2026, bringing cumulative growth in the first two months of the year to 3.7%. It also revised its economic growth projection for 2026 downward, to between 3.5% and 4.0%, supported by the recovery of investment and the resilience of external demand. This estimate is more cautious than the projection announced in December 2025 (4.0%–4.5%). Inflation projected for 2026 remains within the target range of 4 ± 1%. Despite the complex international environment, the Central Bank noted that the Dominican economy has “strong fundamentals and a resilient productive sector to face the challenging outlook,” and that it continues to monitor international developments and their potential impact on local macroeconomic conditions, reiterating its commitment to its inflation target and to macroeconomic stability.

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