Bolivia's central bank deepens contractionary policy, inflation eases but pressures persist

The Central Bank of Bolivia (BCB) intensified monetary tightening in Q3 2026 under its new framework anchored on the monetary base, with annual inflation declining from June levels yet still requiring prudence. The bank sterilized liquidity from foreign currency and gold purchases and OMA maturities, and reported a genuine gain in international reserves. This signals continued policy discipline amid persistent price pressures, with implications for Bolivian financial conditions and regional inflation dynamics.