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Honduras Central Bank raises Monetary Policy Rate to 6%
The Central Bank of Honduras (BCH) has increased its Monetary Policy Rate (TPM) by 25 basis points to 6.00%. BCH President Roberto Lagos described the move as a preventive and calibrated measure to contain inflationary pressures, noting that inflation reached 6.20% in August. Lagos emphasized that the decision aims to move toward a neutral monetary position without causing abrupt credit adjustments, citing significant long-term liquidity in the financial system.
However, the decision has drawn criticism from economists. Nelson Ávila warned that raising the TPM increases the cost of money, which could discourage investment in productive sectors such as agriculture, industry, and construction. He argued that the current cost of financing remains too high and suggested that addressing inflation should focus more on increasing national production to boost supply rather than relying solely on monetary policy.
Simultaneously, the cost of the basic food basket in Honduras has risen to an estimated L16,800, according to the Citizen Initiative for Food Defense (Defco). This represents an increase of approximately L800 compared to late 2025, driven by rising prices for beef, eggs, coffee, corn, and beans due to adverse weather and logistical costs.
Entities
Banco Central de Honduras · Banco Central do Brasil · Central Bank of Brazil · Confederação Nacional da Indústria · Copom · Defco · Federal Reserve · Honduras · National Confederation of Industry · Nelson Ávila · Ricardo Alban · Roberto Lagos
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The Bank of England maintained its benchmark interest rate at 3.75%. www.eeo.com.cn
- [○ 1 SOURCE] The central bank of Brazil cut its benchmark Selic rate by 25 basis points to 13.75%. www.eeo.com.cn
- [○ 1 SOURCE] The rate hike decision was approved unanimously by all 12 FOMC members. www.eeo.com.cn
- [○ 1 SOURCE] The Federal Reserve raised the federal funds rate by 25 basis points to a range of 3.75%-4.00%. www.eeo.com.cn
- [○ 1 SOURCE] The Bank of Japan raised its policy rate by 25 basis points to 1.25%, a 31-year high. www.eeo.com.cn
- [○ 1 SOURCE] Bank of America expects the Federal Reserve to implement two more rate hikes before the end of the year. news.cnyes.com
- [○ 1 SOURCE] Renaissance Macro Research suggests the Federal Reserve's tightening cycle may be just beginning. news.cnyes.com
- [○ 1 SOURCE] The Central Bank of Taiwan reports that despite rising US Treasury yields, international markets remain highly reliant on US dollar assets. finance.technews.tw
- [○ 1 SOURCE] The Central Bank of Brazil lowered its benchmark Selic rate by 25 basis points to 13.75%. www.eeo.com.cn
- [○ 1 SOURCE] Renaissance Macro Research suggests the Federal Reserve's rate hike cycle is likely just beginning. news.cnyes.com