Guatemala: Leader Rate Drops to 4.5%

The Monetary Board, at its meeting on June 25, decided to lower the monetary policy leader rate from 4.75% to 4.50%

Thursday, June 26, 2014

Among the arguments given by the authorities of the Central Bank of Guatemala were "... the behavior of the price of raw materials such as corn and wheat products which are holding a downward trend ... and the rising oil price."

On the domestic side the monetary authority said that "... economic activity continues to perform as expected, supported, among other things, by the evolution of private consumption, remittances and bank credit."

"...Inflation up to May was 3.22% and at the end of the year could close in 2014 at 3.85%, with a floor of 2.85% and a ceiling of 4.85%. "We are optimistic that we will keep inflation within projected ranges and that the decision to lower the leader rate will boost consumption."

More on this topic

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November 2019

After lowering the rate six times between January and October of this year, in its last review the Central Bank of Costa Rica decided to maintain it at 3.25%, because the inflationary rate registers a significant slowdown.

The last reduction made to the Monetary Policy Rate (MPR) was at the end of October, when the Central Bank of Costa Rica (BCCR) reduced it from 3.75% to 3.25%, arguing that the reduction would support the incipient economic recovery process shown by production indicators.

Slowdown in Monetary Policy Rate

August 2019

Between January and July of this year in Costa Rica the Central Bank lowered the Monetary Policy Rate four times in a row, but its last decision was to maintain it at 4%.

Among the arguments of the monetary authority it is worth highlighting that the international interest rates are adjusted downward. In particular, the US Federal Reserve System reduced the reference interest rate range by 25 base points.

Costa Rica: Monetary Policy Rate Rises to 5%

February 2018

Claiming that in the last few months inflation expectations have increased, the Central Bank has raised the monetary policy rate from 4.75% to 5%, from February 1st.

The Central Bank argues that the price of oil has maintained a bullish behavior since July 2017. This situation, with a backlog, is transferring to the local price of fuels, with a potential transmission in the coming months towards other prices.

Guatemala: Leader Rate Stays at 4.75%

May 2014

The Bank of Guatemala is keeping at the same level its leading policy rate, which is the main reference for interest rates in the country.

From a statement issued by the Bank of Guatemala:

The Monetary Board, at its meeting held today, decided to keep the leading monetary policy interest rate at 4.75%, based on a comprehensive analysis of the external and internal situation, having been made aware of the Balance of Inflation Risks.

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