The Central Bank of Dominican Republic left its benchmark interest rate unchanged at 4.50 percent at its September meeting. The move follows a 25bps slash in the previous meeting and leaves the rate at its lowest level since 2013. Policymakers said that the decision is based on the risk balance regarding inflation outlook, international and domestic macroeconomic indicators, market expectations and medium-term projections. The Committee noted that the annual inflation rate rose to 1.7% in August from 1.4 percent in July boosted by cost of food & non-alcoholic beverages, still well below the target range (4% +/- 1%) and it is expected to remain around the lower range by the end of 2019. The Committee reaffirmed its commitment to drive monetary policy towards the achievement of its inflation target and the proper functioning of the financial and payment systems and will continue to monitor global economic developments and its impact on aggregate demand. Interest Rate in Dominican Republic averaged 7.30 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 4.50 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 4.00 in 12 months time. In the long-term, the Dominican Republic Interest Rate is projected to trend around 4.00 percent in 2020, according to our econometric models.