Dominican Republic Central Bank Raises Policy Rate to 5.50% From 5.25%
The Dominican Republic central bank lifted its policy rate to 5.50% from 5.25% on 30 September, its first rise since 2022, citing oil and supply shocks. The post Dominican Republic Central Bank Raises Policy Rate to 5.50% From 5.25% appeared first on The Rio Times .
On 30 September 2026, the central bank of the Dominican Republic increased its benchmark interest rate from 5.25% to 5.50%, a quarter of a percent. The Banco Central de la República Dominicana (BCRD) said the move was preventive, citing persistent supply shocks, primarily higher oil prices due to tensions in the Middle East, global transport disruption and adverse weather.
In line with the rate hike, the bank also increased its two standing facilities by the same 25 basis points, with the one-day repo lending rate rising to 6.00% and the overnight deposit rate to 4.75%. This is the first increase in the rate since late 2022, and it aims to keep inflation expectations anchored and avoid second-round effects on prices.
The bank expects headline inflation to return to the target range of 3% to 5% in the fourth quarter. The peso traded near 58.49 per US dollar on 30 September. The move follows similar rate hikes in the region, such as Colombia's increase to 12.25% in September.
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