The Bank of Guatemala has kept the lead monetary policy rate at 3%, arguing that high levels of uncertainty still persist in the external economic environment.
From the report "Recent macroeconomic performance and prospects," by the Bank of Guatemala :
Global economic growth projections for 2017 and 2018 show that the recovery in economic activity will probably continue, albeit in an environment where high levels of uncertainty and downside risks prevail.Forecasts for international oil prices remain on the upside.
The decision was made in response to economic activity, family remittances and credit to the private sector showing dynamism, and the fact that inflation remains within the target.
From a statement issued by the Bank of Guatemala:
The Monetary Board (MB), based on a comprehensive analysis of the external and internal situation, after reviewing the Inflation Risks Balance, decided to keep the level of the leading monetary policy interest rate at 3%.
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 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”.