Honduras announces measures to contain inflation and revises remittance forecasts

The Central Bank of Honduras (BCH) has unveiled a series of measures aimed at curbing inflation, which reached 5.83% year-on-year in June. Simultaneously, the bank has significantly boosted its forecast for family remittance growth in 2026, now projecting an increase to 7.5%.

To manage monetary liquidity and control price increases, the BCH will increase the amounts offered in securities auctions and raise the reverse repo rate starting in August. These actions complement ongoing open market operations that have already reduced monetary emission growth from 16.5% in December 2025 to 11% in July. The BCH anticipates inflation will stabilize around 4%, within its tolerance range.

The revised Monetary Program for 2026-2027 highlights the resilience of Honduras' economy amidst a challenging international environment. Gross Domestic Product (GDP) grew by 1.2% in the first quarter of 2026 compared to the previous quarter, surpassing the Central American average of 0.8%. This growth was fueled by private consumption, public investment, exports, and robust performance in the agricultural and food industries.

Furthermore, the BCH noted the strength of the external sector, largely driven by the substantial flow of family remittances. These inflows contributed to a surplus in the current account of the balance of payments during the first quarter of 2026. Remittances, which constitute over 25% of the country's GDP, are now projected to exceed $13.1 billion in 2026, an increase from the $12.297 billion received in 2025.

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the inflation will remain around 4%, in line with the institution's tolerance range.