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."

Source: Bank of Guatemala

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Costa Rica: Monetary Policy Rate Rises to 5%

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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.