The Central Bank of Nicaragua (BCN) held its Monetary Policy Reference Rate at 5.75%, citing continued domestic growth, low and stable inflation, and solid macroeconomic balances. The rate declined from 6.25% through 25-basis-point cuts in October 2025 and January 2026. The BCN also kept its one-day monetary repo and deposit window rates at 7.00% and 4.50%, respectively, for córdobas liquidity operations. Economic activity remains on a growth path, supported by broad sectoral expansion, domestic and external demand, and dynamic private-sector credit, while inflation is expected to remain low and stable, although geopolitical tensions and climatic conditions pose upside risks. The BCN said stronger international reserves continue to support the national currency and exchange rate. Globally, geopolitical and trade uncertainty is affecting prices and supply chains, while growth is moderating and elevated energy prices could prolong restrictive monetary policy in advanced economies despite recent rate cuts. The BCN will continue monitoring external and domestic indicators and adjust the reference rate when necessary.
Central Bank of Nicaragua Holds Policy Rate at 5.75%
The Central Bank of Nicaragua (BCN) held its Monetary Policy Reference Rate at 5.75% and maintained its one-day repo and deposit window rates at 7.00% and 4.50%, respectively. The decision reflects continued domestic growth, low and stable inflation, solid macroeconomic balances, and strong international reserves, while geopolitical and climate risks could increase inflation.