- Decision
- Maintain
- Rate change
- 0 bps
- monetary reference rate
- 6.25%
The Central Bank of Nicaragua (BCN) kept its Monetary Reference Rate (TRM) at 6.25 percent in its 6 March 2025 decision, judging that steadily easing domestic inflation, resilient economic growth and low unemployment offset lingering global uncertainties and still-restrictive external financial conditions. Following an unchanged stance in February, the TRM has now been steady at 6.25 percent for two consecutive meetings. The one-day monetary repo and deposit facility rates were also left at 7.50 percent and 5.00 percent, respectively, to guide short-term liquidity and preserve supportive funding conditions. The bank highlighted ongoing economic expansion driven by broad-based sectoral activity, robust private-sector credit and external merchandise exports, while food and service price pressures have moderated and are expected to keep overall inflation low and stable, aided by government subsidies and the exchange-rate policy. Strengthened international reserves continue to back currency stability. Externally, global inflation is declining toward targets and major economies have begun lowering policy rates, although geopolitical tensions and potential trade conflicts could revive price pressures. The BCN will keep monitoring domestic and international developments and stands ready to adjust the TRM when necessary.
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.