The Bank of Guatemala has lowered the leading policy rate, the reference for interest rates in the domestic financial system, from 5% to 4.75%.
The Monetary Board decided to lower the leading policy rate by 0.25 percentage points based on the external and internal economy, seeing a recovery in global economic activity.
From a press release issued by the Bank of Guatemala:
With the increase in exchange rate participation going from 0.65% to 0.70% the central bank will have more flexibility to intervene in the market.
The amendment means that the range within which the Central Bank of Guatemala may intervene by buying or selling dollars in the foreign exchange market will be larger, allowing for greater exchange rate volatility.
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.
The Monetary Board of the Bank of Guatemala, at its meeting on September 25, decided to keep the Leader rate at 5.25%.
From a press release issued by the Bank of Guatemala (Banguat):
The Monetary Board, at its meeting today, decided to maintain at 5.25% the monetary policy leader interest rate, based on a comprehensive analysis of the external and internal situation, after being made aware of the Inflation Risk Balance .
The Monetary Board, at its meeting on July 31, decided to keep the level of the monetary policy leading interest rate at 5.25%.
From a press release by the Bank of Guatemala:
The Monetary Board in its meeting today decided to keep the level of the monetary policy leading interest rate at 5.25%, based on comprehensive analysis of the external and internal situation, after finding out about the Balance Inflation Risks.
After having increased in April by 0.25%, the Monetary Board of the Bank of Guatemala decided to keep the leading rate at 5.25%, with an eye on inflation control.
From a press release by the Bank of Guatemala (Banguat):
The Monetary Board in its meeting today, decided to keep the level of 5.25% for the monetary policy leading interest rate, based on comprehensive analysis of the external and internal situation, after being made aware of the Balance of Inflation Risks.
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%.
The Monetary Board believes that there are now conditions, limited and temporary, to reduce the monetary policy leading interest rate.
A statement from the Bank of Guatemala reads:
MONETARY BOARD REDUCES LEAD POLICY RATE BY 50 BASIS POINTS
The Monetary Board, at its meeting today decided to reduce the level of the leading interest rate for monetary policy by 50 base points from 5.50% to 5.00%, based on comprehensive analysis of the foreign and domestic situation, after reviewing the Inflation Risks Balance, and the results of the mechanical shift of semi-structural Macroeconomic Model for June and orientation of the indicative variables of monetary policy.
The Monetary Board of the Bank of Guatemala has taken the decision based on comprehensive analysis of the foreign and domestic situation.
A statement from the Bank of Guatemala reads:
THE MONETARY BOARD HOLDS LEADING MONETARY POLICY INTEREST RATE AT 5.50%
Guatemala, April 25, 2012
The Monetary Board, at its meeting held today, decided to keep the leading monetary policy interest rate at 5.50%, based on comprehensive analysis of the foreign and domestic situation, after having receiving the Inflation Risks Balance, and the results of the mechanical shift April semi-structural macroeconomic model and the orientation of the indicative variables of monetary policy.
The Monetary Board has unanimously decided to not to change the monetary policy’s prime lending interest rate, keeping it at 4.75%, based on a comprehensive analysis of the internal and external situation.
In making this decision the Monetary Board took into account the following:
a) The risks in the international economic environment associated with the performance of economic activity in some advanced economies, particularly the United States and Europe have increased.
The current Superintendent of Banks of Guatemala, Edgar Barquin, will take over the presidency of the Central Bank of Guatemala on Friday.
Barquin is a CPA, auditor, attorney, notary and was one of the creators of Guatemala president Alavaro Colom´s economic plan. He will replace Maria Antonieta Del Cid de Bonilla.
According to prensalibre.com, Banguat currently is responsible for keeping inflation under control as well as implementing monetary, currency exchange and credit policies."
Inflation deceleration and Risks to economic recovery.
The quarterly report from the Executive Secretary of the Central American Monetary Council (SECMCA) focuses on the region's inflation and recovery prospects.
Inflation, measured by year-on-year change in consumer prices, slowed in the second quarter of 2010 to 4.9%, compared to 2.9% in June 2009. This level is within the target limits set by the region's central banks.
In a strange unanimity, government officials agree with independent economic analysts: dollarization is inconvenient for Guatemala.
That the Guatemalan Central Bank argues against dollarization is no surprise for anyone, as its very reason for existence is questioned with it. Accordingly, its president María Antonieta de Bonilla stated that the concept has more disadvantages than advantages.
A report by “Mirador Monetario” analyzes if the country has met the inflation targets set by the Monetary Board (Central Bank).
It provides information on the evolution of inflation, monetary policy targets as well as the overall effectiveness of the implemented policies.
In order to decide if such policies were effective, the report conducts an historical analysis, comparing the proposed inflation targets and the real observed levels.
The recent increase in the value of the Costa Rican colon versus the dollar is worrisome, not only because there are no clear reasons to explain it, but also because it would be hard to contain it without causing greater problems.
In the past weeks, and without apparent reason, the price of the U.S. dollar in Costa Rica dropped considerably.
Last week we surveyed some financial operators as to why these movements where occurring, the general answer being: “we don’t know”.