Honduras: keeping rates unchanged as prices rise

The Tegucigalpa, Honduras-based Banco Central kept the benchmark rate at 7.75 percent on March 27 and asked commercial lenders to set aside more of their deposits at the bank. The higher reserve requirements are enough to help bring inflation within its official target for 2008, Araque said.
"If you want my point of view, I think the proper thing would be to keep it where it is,'' Araque said in an interview in Washington, where he attended the International Monetary Fund meeting.

Source: Bloomberg.com

More on this topic

Costa Rica: Basic Interest Rate Rises to 7.5%

August 2011

The basic passive rate rose 0.25 percentage points to 7.5%.

The rate is calculated by the Central Bank, which takes into account the borrowing rates paid on Central Bank securities, the treasury and financial institutions for loan terms of between 150 and 210 days.

The indicator was 7% two weeks ago, then rose to 7.25% where it remained for 7days after going back up another 0.25 percentage points.

Credit card rates to rise in Honduras

July 2008

The President of the Central Bank of Honduras, Edwin Araque, has warned consumers that there will be increases in interest rates on credit cards.

The Central Bank is following its tight money policy adopted last March, which involves charging higher interest rates to the nation's banks, which in turn lend to consumers and businesses.

Honduras will avoid IMF pressure to devalue the Lempira.

December 2008

According to the president of the BCH, Edwin Arague, the economic sector of the country will not negotiate any stand by agreement with the IMF since the entity is pressuring them to devalue the local currency.

Araque said that there are no conditions in Honduras to devalue the lempira, since, from a financial point of view, the economic has remained stable and so the measure proposed by the IMF will not be executed, he said.

Guatemala's interest rates rise; benchmark rate now is 7.25%

July 2008

Guatemala's Monetary Committee has raised the benchmark interest rate half a percentage point, from 6.75 to 7.25 percent.

It made the decision upon learning that the rate of inflation soared to 13.56 percent in June, well above the Central Bank's goal of 4 to 7 percent.
"The interest rate was at a level that we thought was low, and we don't want abrupt changes," said Central Bank President María Antonieta del Cid de Bonilla.