For the third time, in this year, the Banco de Guatemala confirmed that it decided to keep the monetary policy rate at 2.75%, since the short term indicators of the economic activity show a dynamism that adjusts to the expected.
Monday, June 3, 2019
From the Banco de Guatemala press release:
Guatemala, May 30, 2019. The Monetary Board, in its session held on May 29, based on the integral analysis of the external and internal economic situation, after evaluating the Inflation Risks Balance, decided to keep the level of the leading interest rate of the monetary policy at 2.75%.
The Monetary Board, in the external environment, took into account that the economic growth projections worldwide, for this year as well as for the following, reflect a moderation in the rhythm of economic activity in several advanced economies and in some of the emerging economies, in a context in which the downward risks and uncertainty have been intensifying. Additionally, it was considered that the prognosis of the median price of oil for 2019 and for 2020, evidence that the growing tendency that has been observed, has moderated.
The Monetary Board, internally, highlighted that the evolution of the economic activity is consistent with the range of economic growth expected for the present year (between 3.0% and 3.8%), which is reflected in the behavior of several short term indicators (the Monthly Economic Activity Index, the monetary issue, the payment means, the banking credit to the private sector, public expense, importations and family remittances).
Additionally, it was emphasized that the prognosis and expectations for 2019 as well as for 2020, allow anticipating that inflation would be within the goal (4.0% +/- 1 percentage point). The Monetary Board declared that it will continue giving close follow up to the evolution of the main economic indicators, external as well as internal, that can affect the general level of prices and, therefore, the inflation expectations.
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Arguing that the main economic indicators show a stable behavior, the Central Bank decided at the beginning of the year to maintain the level of the leading interest rate of the monetary policy at 2.75%.
From the Bank of Guatemala's statement:
February 20th, 2020. The Monetary Board, in its session celebrated on February 19, based on the integral analysis of the external and internal economic situation, after evaluating the Inflation Risks Balance, decided to keep the level of the leading interest rate of the monetary policy at 2.75%.
Arguing that the economic activity and the execution of public expenditure report a behavior attached to the growth forecasts for 2019, the Central Bank decided to maintain again at 2.75% the level of the leading interest rate of the monetary policy.
For the Banco de Guatemala the behavior of several short term indicators follows the prognosis, the institution decided to keep the monetary policy rate without changes.
From the Banco de Guatemala press release:
Guatemala, April 25, 2019. The Monetary Board, in its session held on April 24, based on the integral analysis of the external and internal economic situation, after evaluating the Inflation Risks Balance, decided to keep the level of the leading interest rate of the monetary policy at 2.75%.
Banco de Guatemala decided to keep the monetary policy rate at 2.75%, arguing that several short-term indicators of the economic activity show a dynamism congruent with the projected range of economic growth.
Other reasons to keep the leading rate without variants is that the prognosis and inflation expectations, for 2019 as well as for 2020, are located within the tolerance limit of the goal (4% +/- 1%), according to the Banco de Guatemala.