Macroeconomic Forecast Guatemala

January 2007 | Macroeconomic Forecasts

BMI View: At Banguat's meeting in December, policymakers decided to keep the benchmark interest rate at 5.00%, citing an improvement in the trajectory of inflation, while expressing some fears that price pressures could re-emerge in 2007. We estimate that inflation came in below Banguat's 2006 target of 5-7% (at 4.6%), and that it is likely to hit the 2007 target of 5.0%. In our view, the biggest risk to the inflation scenario comes from imported petrol prices.

If you would like to subscribe to Central America Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Central America Monitor please click on the trial link below.