Honduras Central Bank Attempts to Control Inflation

At a time when prices of raw materials is on the rise internationally, the Central Bank of Honduras has increase by 5% the monetary policy rate (MPR), an instrument which aims to influence interest rates on the market.

The MPR has not recorded variations since August 2009 when it stood at 4.5%.

The decision to increase the rate was taken with the purpose of protecting national savings and future capacity for growth in the economy, according to bank officials.

An article in Prensa.com states: "Honduras, the third poorest country in the Americas expects to close 2011 with economic growth of between 3% and 4% and a reduction in the fiscal deficit of 3.5% of the gross domestic product this year."

The rise of the MPR in Honduras comes at a time when the country is meeting with a technical mission from the International Monetary Fund.

Source: Prensa.com

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