Main interest rate remains unchanged in Guatemala

The monetary board decided yesterday to keep the main interest rate at 7.25%, despite the request from the business sector to lower it in order to revive the economy.

Thursday, December 18, 2008

How many houses are not being built and how many business projects have been stopped due to the lack of credit or the increase in interest rates? And, how many potential jobs have been lost as a result?

These are some of the arguments presented by the business sector to the Monetary Board at the meeting that was held yesterday to review the main interest rate, which affects the rates that banks charge for loans.

More on this topic

Leading Interest Rate In Guatemala Remains at 5%

September 2012

The Monetary Board, at its meeting on September 26, decided to keep the monetary policy leading interest rate at 5.00%.

A statement from the Bank of Guatemala (BANGUAT) reads:

The Monetary Board in its decision took into account the following aspects:

a) On the external front, uncertainty and increased risk aversion, mainly in the Euro Zone and to a lesser extent, in the United States of America.

Guatemala Reduces Leading Rate to 5.75%

April 2009

The Monetary Board reduced the monetary policy's leading rate by 0.5 base points, from 6.25% to 5.75%.

According to Antonieta de Bonilla, chairperson of the Monetary Board, the measure seeks to reduce the cost of bank credit.

Lorena Alvarez in her article in Elperiodico.com.gt, published statements by the chairperson: "The leading rate was reduced by 0.50 base points because inflation expectations have been reduced and it is anticipated to end this year at 5%."

Guatemala's high interest rates create uncertai

July 2008

Several sectors of Guatemala's economy are making dire predictions about the negative effects of the Central Bank's decision to raise its benchmark interest rates as part of its anti-inflation strategy.

Among the expected effects are corresponding increases in bank loan rates, less investment, more unemployment, and exchange appreciation, all of which spell more problems for the economy.

Guatemala's interest rates rise; benchmark rate now is 7.25%

July 2008

Guatemala's Monetary Committee has raised the benchmark interest rate half a percentage point, from 6.75 to 7.25 percent.

It made the decision upon learning that the rate of inflation soared to 13.56 percent in June, well above the Central Bank's goal of 4 to 7 percent.
"The interest rate was at a level that we thought was low, and we don't want abrupt changes," said Central Bank President María Antonieta del Cid de Bonilla.

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