The Bank of Guatemala announced that its Monetary Board unanimously maintained the monetary policy rate at 3.50%. The decision reflects its assessment that inflation risks are contained for now, with forecasts and expectations indicating inflation will remain within the target range in 2026 and 2027. Annual inflation rose to 2.70% in July from 2.27% in June but remained below the 4.0% target, plus or minus 1 percentage point. The increase reflected the end of fuel subsidies and imported inflation pressures. Upside risks include higher fuel prices, a potential escalation of the conflict in the Middle East and possible domestic effects from El Niño, while economic indicators remain consistent with projected 2026 gross domestic product growth of 3.3% to 5.3%.
2026-08-26Bank of Guatemala
Bank of Guatemala maintains policy rate at 3.50% as inflation risks remain contained
The Bank of Guatemala's Monetary Board unanimously maintained the policy rate at 3.50%, judging inflation risks to be contained for now. Inflation rose to 2.70% in July but remained below the target range, while forecasts indicate it will return within target in 2026 and 2027.