Dominican Republic Slashes Rate

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The Central Bank of the Dominican Republic reduced its benchmark rate by 25 basis points to 5.25% in its October 2025 meeting, reflecting easing global uncertainty and more flexible international financing conditions; domestically, the June RD 81 billion liquidity provision program has seen RD 68 billion disbursed to date and is expected to bolster private-sector credit as monetary transmission takes hold; annual headline inflation was 3.76% in September while core inflation stood at 4.35%, both squarely within the 4.0% ± 1.0% target; activity remained solid with the IMAE registering 2.2% growth year to date through September led by agriculture, mining, manufacturing local and free-zone and services, and private credit expanded around 8.5% in October; the BCRD projects both headline and core inflation to stay within target through 2026.

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