The Central Bank of Dominican Republic held its benchmark interest rate at 5.5 percent at its April 2019 meeting. Policymakers said that the decision is based on the balance of risks regarding the inflation outlook. The annual inflation rate rose to 1.47 percent in March from 1.19 percent in February, driven by higher cost of transport and food and non-alcoholic beverages and it is expected to rise towards its midpoint target of 4 percent (±1 percent) over the next two years. The Committee noted that the country's economic growth remains solid, boosted by domestic demand and favourable monetary conditions. Policymakers added that they will continue to monitor the evolution of international financial conditions, oil prices and potential climatic phenomenons on the domestic economy that can generate inflationary deviations. Interest Rate in Dominican Republic averaged 7.37 percent from 2004 until 2019, reaching an all time high of 50 percent in February of 2004 and a record low of 1 percent in January of 2004.
Interest Rate in Dominican Republic is expected to be 5.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Dominican Republic to stand at 5.25 in 12 months time. In the long-term, the Dominican Republic Interest Rate is projected to trend around 5.25 percent in 2020, according to our econometric models.