Guatemala: Leading Rate Remains at 2.75%

Arguing that the economic activity reports a behavior attached to the forecasts of growth for 2019, the Central Bank decided to maintain in 2.75% the level of the leading interest rate of monetary policy.

Friday, September 27, 2019

The inflation forecasts for 2019 and 2020 are located within the tolerance margin of the goal established by the Monetary Board, was another of the arguments of the monetary authority to keep the reference rate without variations.

From the Banco de Guatemala statement:

Guatemala, September 26, 2019. The Monetary Board, in its session celebrated on September 25, 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, considered that global economic growth projections continue to be positive for both 2019 and 2020, although they deprive downside risks.

It also considered that the international price of oil shows an increase regarding the observed at the end of 2018 and that the projections of the average price show a slightly increasing trend for the present year and for the next one.

The Monetary Board, internally, highlighted that some short-term indicators of the economic activity (the Monthly Economic Activity Index, family remittances and the execution of public expense) show a behavior congruent with the annual economic growth foreseen for the present year (between 3.0% and 3.8%).

They also reiterated that the inflation forecasts for 2019 and 2020 are within the tolerance margin of the goal established by the Monetary Board (4.0% +/- 1 percentage point) and the expectations for both years remain anchored.

The Monetary Board reaffirms its commitment to 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.



More on this topic

Guatemala: Leading Rate Begins 2020 at 2.75%

February 2020

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%.

Guatemala: Leading Rate Remains at 2.75%

November 2019

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.

From the Banco de Guatemala statement:

Leading Rate Remains at 2.75%

April 2019

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%.

Leading Rate Begins 2019 with No Changes

February 2019

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.

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