The amount of inflation expected in 2015 is one of the reasons why the Monetary Board has decided to reduce the interest rate benchmark from 4.5% to 4%, a level not seen since 2005.
From a statement from the Bank of Guatemala:
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 4.50% to 4%.
Considering the main internal and external variables stable, the Bank of Guatemala is keeping the leading policy rate, a major reference for interest rates in the country, unchanged.
From a statement issued by the Bank of Guatemala:
The Monetary Board, based on a comprehensive analysis of the external and internal situation, after having been made aware of the Balance Inflation Risks, has decided to keep the rate of the main monetary policy interest at 4.50% .
The Monetary Board, at its meeting on June 25, decided to lower the monetary policy leader rate from 4.75% to 4.50%
Among the arguments given by the authorities of the Central Bank of Guatemala were "... the behavior of the price of raw materials such as corn and wheat products which are holding a downward trend ... and the rising oil price."
On the domestic side the monetary authority said that "...
The benchmark for interests rate for loans and investments in the country will stand at 6.95% until at least Wednesday June 25.
The passive base rate indicator, which is calculated by the Central Bank reflects the average rates given for deposits by financial institutions on fixed terms of 150-210 days, will stay for one more week at the level of 6.95%.
Taking into account stable macro economic variables at the national and the global level, the Bank of Guatemala has decided not to change the policy leader rate, the main reference for interest rates in the country.
From a statement issued by the Bank of Guatemala (BANGUAT):
THE MONETARY BOARD KEEPS MONETARY POLICY LEADER INTEREST RATE AT 4.75%
The Bank of Guatemala is keeping at the same level its leading policy rate, which is the main reference for interest rates in the country.
From a statement issued by the Bank of Guatemala:
The Monetary Board, at its meeting held today, decided to keep the leading monetary policy interest rate at 4.75%, based on a comprehensive analysis of the external and internal situation, having been made aware of the Balance of Inflation Risks.
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:
Appreciation of the quetzal against the dollar has affected the income of exporters who are asking the monetary authority to stop overvaluation of the local currency.
The President of the Guatemalan Association of Exporters (Agexport) reported that the strength of the quetzal is causing products in the country to be more expensive and therefore a change in monetary policy is needed.
With Central Bank interventions having already exceeded $100 million, on February 27th the dollar was quoted at 560 colones at bank counters.
There have now been four consecutive interventions by the Central Bank of Costa Rica (BCCR) to support the price of a dollar in the wholesale market in a week.
The exchange rate at the bank counters was quoted between 500 and 560 colones on Thursday, 27.
The Bank of Guatemala is maintaining at 5% the leading policy rate, the reference for interest rates in the domestic financial system.
The Monetary Board has decided to keep the leading monetary policy interest rate at 5%, based on a comprehensive analysis of the external and domestic economic situations.
From a press release issued by the Bank of Guatemala:
The business sector is drawing attention to the fact that the Central Bank has not been clear in its explanations of the causes of the recent rise in the dollar.
Jaime Molina, president of the Costa Rican Union of Chambers and Associations of Private Enterprise at the Central Bank has complained about a lack of clarity in the explanations given for the causes of the recent rise in the exchange rate.
The Central Bank has reported that starting from September 5 the PBR will be lowered by 0.05% going from 6.55% to 6.50%.
The passive base rate (PBR) has remained at 6.55% for four consecutive weeks. After this update made by state entity the PBR will remain at 6.50% until September 11th.
Elfinancierocr.com reports: "The PBR calculation is an average of the savings rates for five to seven months paid by banks and other financial institutions.