Leading Interest Rate Rises to 5.5% in Guatemala

The Monetary Board has raised the leading interest rate from 5% to 5.50% from today, September 29, 2011.

Thursday, September 29, 2011

A press release from the Bank of Guatemala reads:

THE MONETARY BOARD RAISES THE LEADING INTEREST RATE OF THE MONETARY POLICY FROM 5.00% TO 5.50% AS OF THURSDAY 29 SEPTEMBER 2011

The Monetary Board in its meeting held on September 28, 2011, after being updated on the Balance of Inflation Risks, resulting from mechanical shifting of the Macroeconomic Semi-Structural Model and orientation of the indicative variables, based on a comprehensive analysis of internal and external economic events, decided by a majority to raise the level of the leading monetary policy interest rate by 50 basis points from 5.00% to 5.50%.

In its analysis, the Monetary Board took into consideration that, although a slowdown in global economic growth is expected, in an environment of fiscal and financial risks, especially in the Euro Zone, the world economy will be registering growth rates of 4.0 % in 201 and 2012.

Additionally, the moderation in recent weeks of international oil prices, and those of corn and wheat, has not been reflected significantly in price projections for those products.

The Monetary Board took into account the dynamism of the main indicators of domestic economic activity, such as foreign trade, tax collection, bank loans to the private sector and the behavior of core inflation, which is showing inflationary pressures due to aggregated demand and increased volatility due to the secondary effects of supply shocks that have impacted the behavior of inflation.

Additionally, the Monetary Board emphasized that there has been a deterioration in inflation expectations, so they felt that monetary policy should act decisively to bring down inflationary expectations and moderate runoff effects in the behavior of inflation .



More on this topic

Guatemala: Lider Rate Drops to 3.25%

June 2015

The global economy's slow recovery is one of the reasons behind the reduction from 3.50% to 3.25% in the monetary policy rate.

From a statement issued by the Bank of Guatemala:

THE MONETARY BOARD IS REDUCING BY 25 BASIS POINTS THE LEADING MONETARY POLICY INTEREST RATE

Guatemala: Lider Rate Drops to 3.5%

February 2015

A slowdown in the domestic economy and slow recovery of the external sector has led the Bank of Guatemala to reduce the monetary policy rate from 4% to 3.5% .

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

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% to 3.5% .

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%.

Banguat Leading Rate Rises to 5%

July 2011

The Bank of Guatemala has increased the monetary policy leading interest rate from 4.75% to 5.00% taking effect from 28 July.

In its analysis, the Monetary Board took into consideration that the global economy is continuing to expand, albeit at a slower pace than expected.

 close (x)

Receive more news about Central 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


Take Back Your Life. Costa Rica $100,000 Income & Residency

Property has Everything – Location, Privacy, Ocean Views, Profitable Coffee, Waterfalls, 20 Segregated and Titled Building Sites, Farm Manager.
Very Profitable, $100,000, Coffee Farm, 70 Acre: 30,000...

Stock Indexes

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

Commodities

(Jan 27)
Brent Crude Oil
55.300
Coffee "C"
128.00
Gold
1,842
Silver
25.379