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Dominican Central Bank Raised Its Policy Rate to 5.50% as Construction Grew 7.0%

The Dominican central bank raised its policy rate 25 basis points to 5.50% pre-emptively in September, while construction grew 7.0% year on year. is the Dominican policy rate after the September increase.

The facts

  • The Banco Central de la Republica Dominicana raised its monetary policy rate pre-emptively by 25 basis points at its September meeting, to 5.50% a year.
  • Economic activity grew 3.8% year on year in August and 4.5% on average from January to August.
  • The bank names three drivers of that performance: construction at 7.0%, services at 4.6% and mining at 3.6%.
  • The housing group of the consumer price index stood at 1.79% in August, which the report calls moderate.
  • Headline inflation was 5.13% year on year in August, against a target of 4.0% with a tolerance range of plus or minus 1.0 percentage point.
  • The figures are those available as at 30 September 2026. The report contains no mortgage or construction credit data.

What it means for your money

  • Borrowing in pesos just got dearer. Any loan priced after the September meeting starts 25 basis points higher.
  • Inflation ran at 5.13% in August, above the 4.0% target and above the upper edge of a tolerance band that runs 1.0 percentage point either side. For a landlord holding rent unchanged, that is the rate at which the real value of that rent falls over a year.
  • A non-resident landlord keeps less than the gross rent suggests. Glopra's Dominican Republic tax entry records a 27% final withholding on gross rent under the Tax Code, with no deduction allowed at any rent level.
  • The housing group of the consumer price index rose 1.79% over the year, against 5.13% for the index as a whole. That group tracks rents and utility bills rather than sale prices, so it describes a tenant's monthly cost, not what a home costs to buy.

What to watch

  • The bank states that policy rate decisions are taken in the last week of each month. No specific next date is printed.
  • The report prints no mortgage or construction credit figures, so there is no published measure of whether lending is already slowing.

Sources: Banco Central de la Republica Dominicana, Informe de Politica Monetaria septiembre 2026, figures available as at 30 September 2026 https://cdn.bancentral.gov.do/documents/publicaciones-economicas/informe-de-politica-monetaria/documents/IPoM-septiembre-2026.pdf

Market data: Dominican Republic · Punta Cana