Hold Rates This Year, Cut In 2012

We expect Guatemala's central bank to hold leading interest rates at 5.00% for the remainder of the year, and to cut by 50 basis points in 2012 to 4.50% as concerns about economic growth begin to surface. Softening commodities prices should alleviate inflationary pressures and allow the monetary authorities to pursue a more accommodative monetary policy stance in 2012.

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