Policy Interest Rate in Guatemala
The Policy Interest Rate ended 2022 at 3.75%, up from the 1.75% end-2021 value and down from the reading of 5.00% a decade earlier. For reference, the average policy rate in Central America and Caribbean was 6.40% at end-2022. For more interest rate information, visit our dedicated page.
Guatemala Interest Rate Chart
Guatemala Interest Rate Data
2018 | 2019 | 2020 | 2021 | 2022 | |
---|---|---|---|---|---|
Policy Interest Rate (%, eop) | 2.75 | 2.75 | 1.75 | 1.75 | 3.75 |
Key policy rate left at 5.00% in November
On 29 November, the Monetary Board of the Central Bank of Guatemala (Banguat) unanimously decided to keep the key policy rate at 5.00%, marking the fifth consecutive hold.
Explaining its decision, the Bank said that the slight rise in inflation seen in October was due to temporary factors, namely distribution problems that temporarily limited the supply of some goods. These problems should subside in the medium term, and the Bank still expects inflation to remain within the 3.0–5.0% target range at the end of this year.
Consistent with previous communications, the Bank did not provide forward guidance; it merely reaffirmed its dedication to controlling inflation and maintaining stable inflation expectations. Our panelists think Banguat has reached the end of its hiking cycle and anticipate monetary easing next year. The date of the next monetary policy meeting has yet to be determined but will likely be in early 2024.
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Guatemalan interest rate projections for the next ten years from a panel of 4 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Guatemalan interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Guatemalan interest rate projections.
Want to get access to the full dataset of Guatemalan interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
-
At its meeting on 21 March, the Swiss National Bank (SNB) trimmed its policy rate from 1.75% to 1.50%, becoming...
-
Norway: Norges Bank stays put in March, meeting expectations
At its 20 March meeting, the Executive Board of Norges Bank unanimously voted to hold fire again and leave the... -
Costa Rica: Bank cuts rates again in March
At its 21 March meeting, the Central Bank of Costa Rica (BCCR) cut the monetary policy rate to 5.25% from... -
Mexico: Central Bank cuts rates in March
At its meeting on 21 March, the Governing Board of the Bank of Mexico (Banxico) reduced the overnight interbank interest... -
Turkey: Bank delivers surprise hike in March
At its 21 March meeting, the Central Bank of the Republic of Turkey (CBRT) raised the 1-week repo rate to... -
United Kingdom: Bank of England keeps rates unchanged in March
On 21 March, the Bank of England (BOE) left the bank rate at 5.25%, following 515 basis points of hikes... -
Brazil: Bank delivers sixth 50 basis point reduction in March
At its 19–20 March meeting, the Monetary Policy Committee (COPOM) of the Central Bank of Brazil (BCB) extended its loosening...