The Central Bank of Nicaragua (BCN) held its Monetary Reference Rate (TRM) at 5.75%, citing continued economic growth, an outlook for low and stable inflation, and balanced macroeconomic conditions. The TRM was cut by 25 basis points to 6.00% in October 2025 and by another 25 basis points to 5.75% in January 2026. The one-day monetary repo and deposit facility rates for córdobas remained at 7.00% and 4.50%, respectively. Domestic activity continued to grow on broad sectoral and internal demand strength, supported by merchandise exports, private-sector credit and external inflows, while formal employment growth moderated. Government subsidies and BCN exchange-rate policy continued to support price stability, while monetary policy strengthened international reserves and maintained national currency and exchange-rate stability. Globally, geopolitical and trade uncertainty was affecting prices and supply chains amid a slowing growth outlook, with elevated energy prices potentially prolonging restrictive monetary policy in advanced economies. The BCN will monitor external and domestic indicators and consider adjustments to the TRM when necessary.
Central Bank of Nicaragua Holds Monetary Reference Rate at 5.75%
The Central Bank of Nicaragua held its Monetary Reference Rate at 5.75% after two 25-basis-point cuts, citing continued economic growth, low and stable inflation, and balanced macroeconomic conditions. It maintained the one-day repo and deposit facility rates at 7.00% and 4.50%, respectively.