Policy Rate To Stay Put In 2011 And 2012

The decision by the Banco Central de Honduras to hike the monetary policy rate by 50 bps in its September meeting to 5.00% is in line with our end-2011 policy rate forecast, although we believe the hike is mistimed. As Honduras's economic recovery remains timid, and inflationary pressures seem to be subsiding, we expect the authorities to keep the policy rate at 5.00% for both 2011 and 2012.

To read the full article, please choose one of the following options: