The Central Bank of Nicaragua (BCN) held its Monetary Reference Rate (TRM) at 5.75%, citing continued economic growth and expectations that inflation will remain low and stable, barring unexpected events, mainly global. Over the past year, the BCN held the TRM at 6.25% before cutting it by 25 basis points to 6.00% in October 2025 and by another 25 basis points to 5.75% in January 2026. The TRM signals the cost of one-day liquidity operations in córdobas, while the one-day monetary repo and deposit facility rates remain at 7.00% and 4.50%, respectively. Domestic activity continues to expand across most sectors, supported by internal and external demand, while private-sector credit remains dynamic. Monetary policy has supported currency and exchange-rate stability and strengthened international reserves. Globally, geopolitical and trade uncertainty is affecting prices and supply chains amid slowing growth prospects and an uneven decline in inflation. The BCN will continue monitoring external and domestic indicators and consider TRM adjustments when necessary.
Central Bank of Nicaragua Holds Policy Rate at 5.75%
The Central Bank of Nicaragua (BCN) held its Monetary Reference Rate at 5.75%, citing continued economic growth and expectations for low, stable inflation. The one-day monetary repo and deposit facility rates remain at 7.00% and 4.50%, respectively.