Guatemala: New Reduction in Prime Rate

As part of the health emergency generated by the spread of covid-19, the Bank of Guatemala decided to reduce the prime interest rate again, from 2.25% to 2%.

Thursday, March 26, 2020

The Monetary Board considered that, in the last few days, the perspectives of world economic growth for 2020 have deteriorated considerably, due to the persistent propagation of the coronavirus, which has increased the volatility and uncertainty at a global level, informed the Bank of Guatemala.

You may be interested in "Covid-19: Outlook for the Financial Sector"

From the Bank of Guatemala's statement:

Guatemala, March 25, 2020. The Monetary Board, in its session celebrated today, March 25, based on the integral analysis of the external and internal economic situation, after evaluating the Inflation Risks Balance, decided to reduce the level of the prime interest rate of the monetary policy from 2.25% to 2.00%.

In the external environment, the Monetary Board considered that, in the last few days, the perspectives of world economic growth for 2020 have deteriorated considerably, due to the persistent propagation of the coronavirus, which has deepened the volatility and uncertainty at a global level, which has demanded new actions on behalf of central banks.

On the domestic front, it was noted that economic growth in 2020 could be significantly lower than previously anticipated, given that the external environment is now less favorable and that some national productive sectors have been affected by the emergency. The Monetary Authority indicated that with this measure it seeks to induce a decrease in the cost of credit for businesses, homes and for the general population and, consequently, contribute to moderating the economic impact of the emergency.

The Monetary Board confirms its commitment to continue giving close follow up to the evolution of the main economic indicators, external as well as internal, that could affect the general level of prices and, therefore, the inflation expectations.

Coronavirus: How do the perspectives for businesses in Guatemala change?

We prepared for our clients the report "Information System: Covid-19 and Business Outlook" which helps companies to measure the impact that the crisis will have on their activity in the coming months.

Click here to request access to this report.



More on this topic

Guatemala: Prime Rate Drops to 2.25%

March 2020

Arguing that the impact of covid-19 will be significant in the context of global and local economic slowdown, the Central Bank decided to lower the leading interest rate of monetary policy by 50 basis points, from 2.75% to 2.25%.

The decrease in the leading interest rate of the monetary policy seeks to help contain the deceleration of the economic activity and employment in the short term and reduce the cost of credit, informed the Banco de Guatemala.

Honduras: Monetary Policy Rate Falls to 5.25%

February 2020

In a context where economic activity continued to show moderate growth at the end of 2019, the Central Bank decided that as of February 10th the Monetary Policy Rate would be reduced from 5.5% to 5.25%.

From the Central Bank of Honduras press release:

February 5th, 2020. In the ordinary session No.171 held on February 4, 2020, the Open Market Operations Commission (COMA) of the Central Bank of Honduras (BCH) analyzed the current economic conditions and the most recent domestic and external perspectives. In the international environment, global growth projections for 2020 and 2021 were revised downwards by the International Monetary Fund, as a result of lower growth prospects in the United States of America (USA), the Euro Zone, basically Germany and Spain, as well as some emerging countries, including India, Mexico and Chile. The above is added to the world uncertainty for the economic effects that could be derived from the propagation of the coronavirus.

Costa Rica: Monetary Policy Rate Falls to 3.25%

October 2019

Arguing that the reduction would support the incipient economic recovery process shown by production indicators, the Central Bank decided to lower the Monetary Policy Rate for the sixth time this year.

The central banks of some advanced and emerging economies have relaxed their interest rates, which expands the space for a countercyclical monetary policy in Costa Rica, according to the Central Bank's analysis.

Guatemala: Leading Rate Maintained at 4.75%

May 2014

Taking into account stable macro economic variables at the national and the global level, the Bank of Guatemala has decided not to change the policy leader rate, the main reference for interest rates in the country.

From a statement issued by the Bank of Guatemala (BANGUAT):

 close (x)

Receive more news about Banking

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company, with more than 67...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(May 29)
Brent Crude Oil
38.170
Coffee "C"
97.9
Gold
1,743
Silver
18.499