BCN Maintains Monetary Reference Rate at 5.75 Percent
The Central Bank of Nicaragua (BCN) announces its decision to maintain the Monetary Reference Rate (TRM) at 5.75 percent.
TL;DR
- The Monetary Reference Rate (TRM) in Nicaragua remains at 5.75 percent.
- Monetary Window Rates for Repos and Deposits (1-day term) are set at 7.00 percent and 4.50 percent, respectively.
- International factors include geopolitical uncertainty, global growth with deceleration risks, and restrictive monetary policies in advanced economies.
- Domestic factors show economic activity growth, driven by internal and external demand, private sector credit, and external flows.
- Low unemployment and moderated formal employment growth are observed domestically.
- Domestic inflation is projected to be low and stable, contingent on global geopolitical events not causing international inflation surges.
- Government subsidies and the BCN's exchange rate policy contribute to price stability.
- Monetary policy has ensured national currency stability, exchange rate backing, and strengthened international reserves.
- Internal monetary conditions support financial intermediation.
- Balanced macroeconomic conditions, including economic growth, low unemployment, and low inflation, support the TRM decision.
- The BCN will continue monitoring economic indicators for future adjustments to the TRM.