The Central Bank of the Dominican Republic (BCRD) has announced a reduction in its monetary policy interest rate (MPR) by 25 basis points (bps), moving it from 5.75% to 5.50% annually. This decision aims to introduce more flexible monetary conditions to help boost domestic demand given the changing external situations. The BCRD stated that while global uncertainty persists, the measure was taken because international financial conditions are becoming less restrictive. Alongside the MPR cut, the rate for the permanent liquidity expansion facility (1-day Repos) has also been reduced from 6.25% to 6.00% annually. The Central Bank’s move is supported by a stable domestic inflation environment.• Inflation has remained within the target range of 4.0%±1.0% since the first half of 2023.• Year-on-year inflation was 3.71% in August 2025.• Core inflation (excluding volatile items) stood...