Friday, September 22, 2023

The central bank of Guatemala maintains interest rates at 5% for the third time in a row

Board Monetary of the Bank of Guatemala has once again unanimously decided to freeze the interest rates at 5% and maintain the pause in the upward cycle that began in May, this being the third consecutive occasion in which it opted for this decision.

In the statement after the monetary policy meeting, the agency has highlighted that inflation continues to decrease in the country, standing at 4.53% in the month of July. Since the beginning of the year, when there was a rise in prices in Guatemalathe index has been cut in half.

The drop in inflation is due, according to the bank, to the increases in interest rates that took place at the beginning of the year and the lower external inflationary pressure, as well as the reduction in inflation expectations.

In this context, both the forecasts and the inflation expectations suggest that inflation would maintain a trajectory within the target in the remainder of 2023 and in 2024.

However, the bank has reaffirmed its commitment to continue adopting the measures that are “necessary” so that inflation gradually converges to the 4% target. “The evolution of the main economic indicators that may continue to affect the general level of prices will continue to be closely monitored,” he stressed.


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