Colorful city in Guatemala

Guatemala Monetary Policy June 2024

Guatemala: Banguat stands pat for tenth successive meeting in June

On 26 June, the Monetary Board of the Central Bank of Guatemala (Banguat) unanimously decided to keep the key policy rate at 5.00%, marking the tenth consecutive hold since May 2023.

The Bank determined that the currently tight monetary policy backdrop is congruent with inflation remaining within its 3.0–5.0% target range in 2024–2025; price pressures rose to 3.8% in May but remained below the mid-point of the Bank’s target range. Moreover, Banguat highlighted that inflation expectations continue to fall within its target band. Regarding activity, the Bank noted that most short-term indicators aligned with its GDP growth forecasts of 3.5% and 3.7% for 2024 and 2025, respectively, giving it more scope to keep interest rates elevated.

In its communiqué, Banguat did not include explicit forward guidance but once again highlighted its commitment to anchor inflation and inflation expectations within its target range. Our panelists expect Banguat to embark on a monetary policy easing cycle later this year and have penciled in around 75 basis points of cuts by year-end.

The next monetary policy meeting is scheduled for 28 August.

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