- Decision
- Maintain
- Rate change
- 0 bps
- monetary reference rate
- 6.25%
The Central Bank of Nicaragua left its Monetary Reference Rate (TRM) steady at 6.25 % and maintained the one-day monetary repo and deposit facility rates at 7.50 % and 5.00 %, respectively, citing a balance between easing domestic inflation and solid economic growth. The unchanged corridor seeks to preserve orderly liquidity conditions and signal the cordoba cost of overnight funds. Headline inflation is falling as food and service price pressures diminish, and the central bank expects it to stay low and stable, aided by government subsidies and its exchange-rate policy. Economic activity continues to expand across most sectors on the back of strong domestic demand, merchandise exports, rising private-sector credit and external inflows, while the labour market shows low unemployment and increasing formal jobs. Internationally, global inflation is converging toward targets and major advanced economies have begun rate cuts, though policy remains restrictive and geopolitical uncertainty poses upside risks to global prices. The current stance is supporting currency stability, bolstering international reserves and fostering healthy financial intermediation, and the central bank will adjust the TRM if evolving domestic or external conditions warrant.
Rate evolution
From September 2025 to January 2026, the Central Bank of Nicaragua lowered its policy rate by 50 basis points from 6.25% to 5.75%, cutting in October, pausing in November and December, and easing again in January. The bank linked this path to lower international interest rates and domestic monetary conditions, alongside a domestic backdrop of falling and then stable inflation as food and related service pressures eased, continued economic growth supported by internal demand, exports, private-sector credit and external flows, and a labour market with low unemployment and rising formal employment. Throughout, it said global inflation was declining only slowly and unevenly and that advanced economies remained restrictive despite rate cuts, while uncertainty around geopolitical and commercial tensions could affect international prices, supply chains, financial markets and the global outlook. In the latest decisions, it again cited low and stable inflation, currency and exchange-rate stability, stronger reserves and healthy financial intermediation as support for the January cut, while stressing that unexpected global shocks remain the main risk and that the rate will be adjusted as needed.