Junta Monetaria (the Monetary Board) decided to lower the leader rate of the monetary system by 0.50 basic points, dropping from 5.75% to 5.25%.
The reductions in the leader rate that the Junta Monetaria has been implementing since January 2009, a month in which the indicator was at 7.25%, still does not reflect the interest rates that the banks are charging.
The Banguat continued its intervention in the foreign exchange market by selling $34.9 million to stop the devaluation of the Quetzal.
Pressures against the quetzal could be a product of the decision taken in December by the Monetary Board and the Bank of Guatemala to loosen the rules of participation and the reduction in bank reserves which generated greater liquidity in the local currency that was channeled toward purchasing foreign currency, according to some analysts.
The president of the Guatemala's Central Bank, María Antonieta de Bonilla, is worried about the current economic situation in hre country and predicts the coming of stricter credit conditions.
Del Bonilla made her comments in an interview with the newspaper Prensa Libre, following an announcement by the National Statistics Institute that reported an annual inflation rate of 13.56 percent in June, far above this year's goal of 5.5 percent plus or minus 1.5 percent.
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