- Decision
- Maintain
- Rate change
- 0 bps
- monetary reference rate
- 6%
The Central Bank of Nicaragua (BCN) kept its one-day Monetary Reference Rate (TRM) unchanged at 6.00 percent, saying balanced macroeconomic conditions, lower and stable domestic inflation, and continued growth across most sectors supported the hold. After trimming the TRM by 25 bp to 6.00 percent in October, the bank has left the rate steady in November and December. Overnight monetary repo and deposit facility rates were also maintained at 7.25 percent and 4.75 percent, preserving the corridor used to guide short-term liquidity and support financial intermediation. Domestically, inflation has eased on softer food and service prices and is expected to remain contained amid balanced fiscal and monetary policies, robust private-sector credit growth, resilient external merchandise demand and solid labour-market conditions marked by low unemployment. The bank highlighted stable exchange rates and strengthened international reserves. Externally, it noted slowing global growth, uneven disinflation and elevated geopolitical and trade uncertainties even as advanced economies have begun modest rate cuts while retaining an overall restrictive stance. The BCN will continue to monitor external and internal 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.