- Decision
- Maintain
- Rate change
- 0 bps
- monetary reference rate
- 6.25%
The Central Bank of Nicaragua (BCN) left its one-day Monetary Reference Rate (TRM) unchanged at 6.25 percent to preserve currency stability and support balanced monetary and liquidity conditions amid ongoing domestic disinflation and resilient economic growth. The TRM has been steady at 6.25 percent since at least February 2025. The overnight monetary repo and deposit facility rates were also kept at 7.50 percent and 5.00 percent, respectively, with the BCN stressing that the corridor underpins liquidity management and financial intermediation. The bank noted that headline inflation continues to retreat as food and services price pressures fade and is expected to stay low and stable, while output is expanding across most sectors, credit to the private sector is dynamic, external inflows are firm and unemployment remains low. Policymakers added that the current stance supports exchange-rate stability and higher international reserves. Externally, global inflation is easing and major central banks have started to lower rates but maintain a restrictive bias amid heightened geopolitical and trade tensions, which could rekindle price pressures. The BCN pledged to keep monitoring domestic and global conditions and stands ready to adjust the TRM if 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.