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%.
A slowdown in the domestic economy and slow recovery of the external sector has led the Bank of Guatemala to reduce the monetary policy rate from 4% to 3.5% .
From a statement issued by the Bank of Guatemala (BANGUAT):
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% to 3.5% .
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%.
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:
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 .
After confirmation that the leading rate will remain at 5.25%, authorities at the Bank of Guatemala forecast that inflation will end in 2013 at 5%.
This was explained by the president of the Bank of Guatemala and of the Monetary Board, Edgar Barquín.
"... Earlier this year, experts warned that the price index would remain at 4 + -1, which, if this forecast is ratified, it would mean reaching the upper limit provided by the Monetary Board".
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.
The monthly report by the Foundation for the Development of Guatemala has been released showing the main indicators of the national economy.
Inflation trending down
The Consumer Price Index (CPI) had an annual variation of 4.13% in April 2013, down by 0.14 percentage points compared to April last year (4.27%), while the monthly variation was 0.17%, 0.20 points less than in the same month of 2012 when it was 0.27%.
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 (JM) authorized the issuance of $ 210 million in treasury bonds by the Ministry of Finance.
If approved by Congress, the Government's deficit this year would reach 3.4% of GDP.
Elperiodico.com.gt reports, "Julio Suarez, vice president of Banguat, announced that JM endorsed his opinion of an increase in public debt, although representatives of the private banking and corporate sectors opposed it."
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 Monetary Board reduced the prime interest rate by .025 percentage points.
Prensalibre.com reports: "The decision was due, among other things, to the drop in the oil and food prices, as well as the forecast of recession in the world's largest economies, according to explanations at a press conference yesterday afternoon by the president of the Bank of Guatemala, Maria Antonieta Del Cid de Bonilla."
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.
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?