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 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 has maintained the leading interest rate for monetary policy at 5.5%.
At its meeting held on February 15th , 2012, the Monetary Board decided unanimously to maintain the level of the monetary policy leading interest rate at 5.50%, based on a comprehensive analysis of economic and financial events, internally and externally, after having been informed about the Inflation Risks Balance, as well as the results of the first implementation in 2012 of the semi-structural Macroeconomic Model and the orientation of the indicative variables of monetary policy, according to a press release by Banguat.
The central bank decided to lower in 0.5 basis points the leader interest rate, going from 5.25% to 4.75%.
'Some of the reasons for this decision are lower observed growth in inflation and lower inflation expectations' explained María Antonieta del Cid de Bonilla, Central Bank President.
Even though the reference interest rate has dropped 2.25 points so far in 2009, the average interest rate of a loan at a bank has increased 0.67 points.
Even though the reference interest rate ("tasa líder"), has dropped 1.75 percentage points so far this year, the rate for an average loan increased 0.67 points.
In January this year, the average interest rate for loans was 15.06%, raising to 15.73% by the end of June, according to data from the Banking Superintendence.
Journalist Jenniffer Marroquín writes in an Elperiodico.com.gt article: "On the other hand, the reference rate for monetary policy [known as 'tasa líder'], was 7.0% in January, but after several adjustements it dropped to 5.25%. The central bank will review this rate once again".
Junta Monetaria (the Monetary Board) decided to lower the leader rate of the monetary system by 0.50 basic points, dropping from 5.75% to 5.25%.
The reductions in the leader rate that the Junta Monetaria has been implementing since January 2009, a month in which the indicator was at 7.25%, still does not reflect the interest rates that the banks are charging.
The Monetary Board reduced the monetary policy's leading rate by 0.5 base points, from 6.25% to 5.75%.
According to Antonieta de Bonilla, chairperson of the Monetary Board, the measure seeks to reduce the cost of bank credit.
Lorena Alvarez in her article in Elperiodico.com.gt, published statements by the chairperson: "The leading rate was reduced by 0.50 base points because inflation expectations have been reduced and it is anticipated to end this year at 5%."
The Monetary Board (JM) decreased the leading interest rate by 0.25 basis points, placing the indicator at 6.25%.
According to Sigloxxi.com, "One of the reasons for the adjustment, said the chairman of the Board and the Bank of Guatemala (Banguat), Maria Antonieta de Bonilla, is that inflation over the past three months was lower than expected. Even so, it lies slightly above the tolerance margin for 2009.
Starting today, the prime interest rate based on monetary policies dropped from 7 to 6.5%.
Lorena Álvarez writes in Elperiodico.com.gt: “It is the second monthly reduction in the rate approved by the monetary board. At the January meeting, a reduction of 0.25 points was approved. Experts from the central bank have conducted forecasts indicating that the inflation rate might close at 6.8 percent in 2009 and be at 4 percent by the end of 2010."
Official sources indicated that government representatives will suggest a reduction of the official prime rate by up to 1 point.
Elperiodico, on its website, publishes: "The Monetary Meeting (JM, initials in Spanish) will analyze a possible reduction of the prime interest rate tomorrow in order to try to revive credit and the economy. In its meeting of January, [action by] the JM reduced the prime rate by 0.25 points, leaving it at 7 percent, a reduction considered timid by bankers and analysts."