The Central Bank of Nicaragua held its Monetary Reference Rate (TRM) at 5.75% in July, citing expectations for low and stable inflation, continued economic growth and solid macroeconomic balances. Over the past year, it held the TRM at 6.25% in September 2025, cut it by 25 basis points in both October and January to 5.75%, and has held it since. The TRM signals the cost of one-day cordoba liquidity operations, while the one-day monetary repo and deposit window rates remain at 7.00% and 4.50%, respectively. Domestic activity continues to grow across most sectors, supported by internal demand, merchandise exports, private-sector credit and external inflows, while unemployment remains low despite moderating formal employment. The central bank expects inflation to remain low and stable, although international inflation and weather conditions pose risks, and said stronger international reserves continue to support the exchange rate. Globally, geopolitical and trade uncertainty has moderated but continues to affect prices and growth prospects, while prolonged inflationary effects could prompt major central banks to raise rates and maintain restrictive policy for longer. The Central Bank of Nicaragua will continue monitoring domestic and external indicators and consider TRM adjustments as 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% in July, citing low and stable inflation expectations, continued economic growth and solid macroeconomic balances. The one-day monetary repo and deposit window rates remain at 7.00% and 4.50%, respectively.