Monetary Policy Rate is set at 5.75%

Arguing that the inflationary expectations of the economic agents are still close to the upper limit of the tolerance range with a decreasing tendency, the Central Bank of Honduras decided to keep the monetary policy rate at the same level.

Thursday, November 14, 2019

From the BCH statement:

Tegucigalpa MDC, November 13, 2019. In the ordinary session No.169/11-11-2019 held on November 11, 2019, the Open Market Operations Commission (COMA) of the Central Bank of Honduras (BCH) analyzed the current economic conditions and the most recent perspectives internally and externally. In the international environment, the growing commercial and geopolitical tensions have aggravated the uncertainty, generating a deceleration in the commercial flows and lower perspectives of world economic growth for 2019 and 2020.4

In this context, added to the weakening of real investment and exports in and from the United States of America (USA), the Federal Reserve (FED) of the USA, in the meeting of October 30, 2019, reduced again its reference rate by 25 basic points (bp), establishing it in the range of 1.50%-1.75%; forecasting the majority of analysts that said rate would remain in that range for the remainder of the year.

The relevant raw materials for the national economy, the spot price of West Texas Intermediate (WTI) oil and that of coffee continue registering a volatile behavior, located on November 8 at around US$57.0 per barrel and US$113.0 per 46 kg bag, respectively. Meanwhile, the future contracts for the closing of 2019 indicate that the prices of both products would be below the average registered in 2018.



More on this topic

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.

Monetary Policy Rate Closed 2019 at 4.5%

January 2020

After the Central Bank of the Dominican Republic decided to lower the monetary policy rate to 4.5% at the end of August last year, it decided on December 27 to keep it unchanged, arguing that inflation continues in the projected ranges.

From the Central Bank of the Dominican Republic's press release:

Honduras: Monetary Policy Rate Remains at 5.75%

May 2019

Arguing that core inflation remains below total inflation, the BCH decided to maintain the Monetary Policy Rate at the same level.

From the BCH statement:

May 9th, 2019. In ordinary session No.164 held on May 6, 2019, the Open Market Operations Commission (COMA) of the Central Bank of Honduras (BCH) analyzed the current situation and prospects of the main macroeconomic and financial indicators, at the national and international levels.

Honduras: Monetary Policy Rate Up to 5.75%

January 2019

Arguing that the medium-term forecasts indicate that the inflation trajectory will remain above the tolerance range, the BCH decided to raise the Monetary Policy Rate by 0.25%.

From the BCH press release:

January 4th, 2019. In ordinary session No.158-10-12/2018, the Open Market Operations Commission (COMA) of the Central Bank of Honduras (BCH), analyzed the recent evolution and perspectives for the main macroeconomic and financial indicators, at domestic and international levels.

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