Guatemala: Lider Rate Drops to 4%

The amount of inflation expected in 2015 is one of the reasons why the Monetary Board has decided to reduce the interest rate benchmark from 4.5% to 4%, a level not seen since 2005.

Thursday, November 27, 2014

From a statement from the Bank of Guatemala:

The Monetary Board, based on a comprehensive analysis of the external and internal situation, after having heard of the Inflation Risks Balance, has decided to reduce the level of leading monetary policy interest rate from 4.50% to 4%.

The Monetary Board, in the external environment, believes that the world economy has been recovering at a moderate pace, supported by the recent momentum in advanced economies, although downside risks remain. It also took into account the behavior of the fall in international prices of some commodities, such as oil, yellow corn and wheat, which affect inflation in the country.

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