Honduras’ central bank raised its monetary policy rate by 175 bps to 5.75%, effective October 28, marking the second sharp hike in under three months following a previous 100 bps increase in August. The rate adjustments aim to control inflation and strengthen Honduras’s external position amid reduced export revenues and slower remittance growth. The bank noted that inflation remains within the 4% ±1% target range for 2024 but acknowledged persistent inflation risks from both external and domestic factors.