- Decision
- Maintain
- Rate change
- 0 bps
- monetary reference rate
- 6%
The Central Bank of Nicaragua (BCN) left its one-day Monetary Policy Reference Rate unchanged at 6.00 % on 6 November, judging that easing domestic inflation, solid real-sector momentum, buoyant private-sector credit and low unemployment warrant no further move for now. After trimming the rate by 25 bp in October from 6.25 %, the BCN also kept the monetary repo and deposit windows at 7.25 % and 4.75 %, respectively, to guide short-term córdobas liquidity and safeguard orderly intermediation. Consumer-price pressures have abated on lower food and service costs, and the bank expects inflation to stay “low and stable”, supported by government subsidies and its exchange-rate policy, while international reserves continue to strengthen. Externally, the bank noted that global growth is slowing and disinflation remains uneven amid persistent geopolitical and trade uncertainties, even as advanced economies have begun lowering policy rates from still-restrictive levels. The BCN will keep watching domestic and external indicators and stands ready to adjust the TRM if 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.