Colorful city in Guatemala

Guatemala Monetary Policy June 2023

Guatemala: Banguat keeps the policy rate unchanged in June

On 28 June, the Monetary Board of the Central Bank of Guatemala (Banguat) kept the key policy rate unchanged at 5.00%.

The decision to keep the rate unchanged was influenced by a decline in inflation and inflation expectations in recent months. Moreover, the Bank anticipates that inflation will reach the target range of 3.0–5.0% by the end of 2023, further reducing the pressure to hike.

In line with its previous statements, Banguat did not provide any forward guidance but emphasized its commitment to controlling inflation and inflation expectations. Our panelists expect that the policy rate will be lowered by the end of the year.

The next monetary policy meeting is scheduled for 30 August.

On the outlook, analysts from the EIU commented:

“We expect the Banco de Guatemala to hold the policy rate in the coming months at its current level of 5%, where it has been since April, as price pressures have eased very slowly. Once headline inflation is close to (or within) Banguat’s 3-5% inflation target range, the central bank will embark on a mild easing cycle in late 2023 or early 2024 […]. In any case, the low level of financial intermediation in the country limits the impact of interest-rate rises on the wider economy.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest