The Central Bank (BCRD) has decided to lower its benchmark interest rate by 25 basis points to 5.75% per year, effective 27 December 2024. This decision was made following a monetary policy meeting held on that date.
The Central Bank cited recent developments in the global economy, including interest rate cuts in advanced economies and increased global uncertainty, as factors influencing its decision. Additionally, the BCRD noted the strong performance of the Dominican economy, coupled with stable inflation that has remained within the target range of 4.0% ± 1.0% throughout the year.
To support this move, the Central Bank explains that it has implemented additional measures to increase liquidity in the financial system. These include expanding repo facilities, eliminating provisions for interbank transactions, and releasing legal reserve requirements.
The BCRD’s decision aligns with the global trend of central banks easing monetary policy in response to slowing economic growth. The Federal Reserve, the European Central Bank, and central banks across Latin America have also reduced their benchmark interest rates in recent months.
Despite a moderate slowdown in credit growth, the Dominican economy continues to expand at a healthy pace, driven by strong performance in tourism, exports, remittances, and foreign direct investment.
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Central Bank
2 January 2025