- The monetary policy rate rose 0.25 points, from 5.25% to 5.50%: the first change in a year.
- It aims to contain inflation, which fell to 5.13% in August but remains above the 4% ± 1% target.
- Loans and credit cards may gradually become more expensive; certificates and deposits could pay slightly more.
- Check whether your loans have fixed or variable rates and adjust your cash flow.
What is the monetary policy rate?
It is the benchmark rate set by the Central Bank to guide the cost of money in the economy. When it rises, banks pay more for liquidity and, over time, that usually passes through to loan and deposit rates.
What the Central Bank decided
| Indicator | Level |
|---|---|
| Monetary policy rate | 5.50% (previously 5.25%, unchanged since October 2025) |
| Liquidity facility (1-day repos) | 6.00% |
| Remunerated deposits (overnight) | 4.75% |
| Year-on-year inflation (August 2026) | 5.13% |
| Core inflation (August 2026) | 4.76% |
| Inflation target | 4% ± 1% |
Why did it go up?
The Central Bank described it as a preventive measure against several price risks: expensive oil, disruptions in global trade and shipping, the effect of weather on food and tighter international financial conditions. The goal is to keep those shocks from spreading to other prices and to keep inflation expectations anchored.
The economy is still growing: it expanded 4.5% between January and August, driven by construction, financial services and tourism, and the Central Bank projects similar growth for the full year.
What happens to your loan?
It depends mainly on the type of rate you agreed to:
| Type of credit | What may happen |
|---|---|
| Fixed-rate loan | The payment does not change during the agreed fixed period. |
| Variable or adjustable-rate loan | The bank may adjust it at the next review, according to your contract. |
| New loan | It may cost somewhat more than a few months ago; compare offers. |
| Credit cards and credit lines | Their rates usually adjust faster. |
An example to gauge it: if the rate on a RD$1,000,000 variable loan rises 0.25 points, annual interest increases by about RD$2,500. The actual figure depends on the balance, the term and how much your bank adjusts, as it is not required to pass on the full change or do so immediately.
What about your savings and certificates?
When the benchmark rate rises, banks may offer somewhat higher returns on certificates of deposit and term deposits. If you are opening or renewing a certificate, compare rates across institutions before deciding.
What your company can do now
- List your debts and note which have variable rates and when they are reviewed.
- Calculate how your payment would change if the rate rises and project your cash flow for the coming months.
- If you plan to borrow, compare offers and ask about fixed rates and the total cost of credit.
- Review your prices and costs: if inflation reaches your suppliers, it is better to know before it hits your margin.
- Keep a liquidity cushion to cover unexpected costs without turning to expensive credit.
Want to know how this change affects your company’s finances?
Let’s talkFrequently asked questions
How long will the rate stay at 5.50%?
There is no set date. The Central Bank reviews the rate at its monetary policy meetings based on how inflation evolves, and expects inflation to return to the target range during the fourth quarter of 2026.
Will my bank raise the rate on my loan?
Only if your loan has a variable or adjustable rate, and under the terms of your contract. Ask your bank when the next review is.
Should I pay off my loan early?
It depends on the rate, any prepayment penalties and your liquidity. Review your case before deciding: the answer is not the same for every company.
What does it mean for inflation?
The measure aims to keep prices moving down toward the 4% ± 1% target. In August 2026 year-on-year inflation was 5.13% and core inflation 4.76%.