The Central Bank of Nicaragua maintained its monetary reference rate at 5.75%, the benchmark for overnight liquidity operations in NIO. It also held its overnight monetary repo and deposit facility rates at 7.00% and 4.50%, respectively. The decision reflects continued domestic growth and low inflation alongside renewed external price pressures.
Domestic activity continues to expand, supported by domestic demand, merchandise exports, private sector credit and external inflows. Unemployment remains low, with moderate growth in formal employment. Higher international reserves support currency and exchange rate stability, while domestic monetary conditions continue to support financial intermediation.
Domestic inflation is expected to remain low and stable, although higher international inflation linked to geopolitical tensions is expected to continue feeding into local prices. Weather conditions are also affecting some domestic prices, while government subsidies and the central bank’s exchange rate policy support price stability. Internationally, the recent inflation rebound has prompted major central banks to raise interest rates, partially reversing earlier financial easing and prolonging restrictive monetary policy.