Macroeconomic Forecast Guatemala

BMI View: Credit conditions in Guatemala continue to tighten, with the average lending rate climbing to 13.5% as of October. Thus far September's policy rate hike from 5.0% to 5.5% seems to have had very little impact on the lending rate. That said, in the face of increasing global headwinds and the accompanying rise in credit risk as economic growth slows, we expect banks to become more stringent, such that the lending rate will continue to increase towards our end-2012 forecast of 13.00%.

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