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Guatemala Monetary Policy September 2023

Guatemala: Banguat holds rates steady in September amid inflation respite

On 27 September, the Monetary Board of the Central Bank of Guatemala (Banguat) unanimously decided to keep the key policy rate unchanged at 5.00%, marking the fourth consecutive hold.

The decision was driven by several factors, including the recent drop in inflation, which has stayed within the Bank’s target range of 3.0–5.0% for the past three months; Banguat attributed this decline partly to the delayed effects of previous monetary tightening. In addition, the Bank maintained the assertion that inflation would remain within its target range throughout 2023 and 2024.

Consistent with previous communications, the Bank did not provide forward guidance; it only reaffirmed its dedication to controlling inflation and maintaining stable inflation expectations. The consensus is for the Bank to lower its policy rate by the end of the year.

The next monetary policy meeting is scheduled for 29 November.

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