Honduras: Monetary Policy Rate Falls to 5.25%

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%.

Thursday, February 6, 2020

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.

The US Federal Reserve (FED), in its January 2020 meeting, decided to maintain its reference rate in the range of 1.50%-1.75%, noting that its current monetary policy stance is appropriate to support the sustained expansion of economic activity and strong labor market conditions and to keep inflation around its 2.0% target. The spot and future price of coffee has been reduced with respect to December 2019, derived from the greater production expected from Brazil for the 2020-2021 harvest and from the propagation of the coronavirus that has affected the price of raw materials.

Read full press release (In Spanish).

More on this topic

Guatemala: New Reduction in Prime Rate

March 2020

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%.

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.

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.

Guatemala: Leader Rate Drops to 5%

October 2013

The Monetary Board, at its meeting on October 30, decided to reduce the level of the leading interest monetary policy rate from 5.25% to 5%.

From a press release issued by the Bank of Guatemala (Banguat):

The Monetary Board, at its meeting today, decided to reduce the level of the leading monetary policy interest rate by 25 base points from 5.25% to 5.00%, based on a comprehensive analysis of the external and internal environment, after reviewing the inflation risks balance.

Leading Interest Rate in Guatemala Rises to 5.25%

April 2013

Taking into account inflation expectations, the Monetary Board has increased the leading interest rate by 0.25% , going from 5% to 5.25%.

From a press release issued by the Bank of Guatemala (Banguat):

The Monetary Board in its meeting today, after learning the balance of inflation risks, based on comprehensive analysis of the external and internal situation, has decided to raise the level of the monetary policy leading interest rate by 25 base points, going from 5.00% to 5.25%.

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