This week in monetary policy: Uganda, Jamaica, Zambia, Belarus, Namibia, Guatemala, Indonesia, Turkey & Rwanda

    This week - February 15 through February 20 - central banks from 9 countries or jurisdictions are scheduled to decide on monetary policy: Uganda, Jamaica, Zambia, Belarus, Namibia, Guatemala, Indonesia, Turkey and Rwanda.

     Following table includes the name of the country, the date of the next policy decision, the current policy rate, the local time a policy decision is announced, the result of the last policy decision, the change in the policy rate year to date, and the rate one year ago.
    The table is updated when the latest decisions are announced and can always be accessed by clicking on This Week.

WEEK 7
FEB 15 - FEB 20, 2021:
UGANDA	15-Feb	7.00%	12:00	0	0	9.00%
JAMAICA	16-Feb	0.50%		0	0	0.50%
ZAMBIA	17-Feb	8.00%	9:30	0	0	11.50%
BELARUS	17-Feb	7.75%	12:00	0	0	8.75%
NAMIBIA	17-Feb	3.75%		0	0	6.25%
GUATEMALA	17-Feb	1.75%		0	0	2.00%
INDONESIA	18-Feb	3.75%		0	0	4.75%	EM
TURKEY	18-Feb	17.00%	14:00	0	0	10.75%	EM
RWANDA	18-Feb	4.50%		0	0	5.00%

 
    www.CentralBankNews.info

Guatemala maintains rate as economy seen recovering

     Guatemala's central bank left its monetary policy rate steady for the third time, saying the country's economy is recovering better than it had expected in the middle of this year and inflation is forecast to remain around the target this year and in 2021.
     The Bank of Guatemala left its leading interest rate at 1.75 percent after cutting it three times earlier this year by a total of 100 basis points following two rate cuts in March and one in June. 
     At its previous meeting in September, the bank's monetary board also unanimously maintained the rate.
     Guatemala's economy contracted by an annual 9.6 percent in the second quarter after expanding 0.9 percent in the first quarter and the central bank said most short-term indicators, such as family remittances, the monthly index of economic activity, confidence, and monetary aggregates, show a better recovery than expected in the middle of this year.

     In June the central bank forecast the economy would contract between 3.5 and 1.5 percent this year, down from estimated growth in 2019 of 3.8 percent.

     Guatemala's inflation rate has accelerated in the last four months and rose to 4.97 percent in September from 4.19 percent in August.

     www.CentralBankNews.info

     

Guatemala cuts rate 3rd time in 2020 to boost growth

     Guatemala's central bank lowered its monetary policy rate for the third time this year, saying this is aimed at lowering the cost of credit for companies and households and thus help promote a recovery of economic activity.
     The Bank of Guatemala cut it policy rate by a further 25 basis points to 1.75 percent and has now cut it 100 points this year following two rate cuts in March.
     This includes a 50-basis-point cut on March 19 at an extraordinary board meeting, the same week when 46 other central banks, including the U.S. Federal Reserves,  lashed their rates in response to the global measures to prevent the spread of the Covid-19 pandemic.
     The bank's monetary board said in a statement released on June 25 that its policy decision, which was taken at its June 24 meeting, was unanimous.
     A significant slowdown in economic activity in Guatemala and imports has been partially moderated due to a better-than-expected performance of exports, family remittances and bank credit to the private sector, the central bank said, referring to the monthly index of economic activity (IMEA).
     However, the central bank still lowered its forecast for the economy to contract between 3.5 and 1.5 percent this year from its previous forecast of a contraction of 0.5 percent.
     In 2019 Guatemala's economy grew an estimated 3.8 percent.
     The economy should recover next year and expand between 2.0 and 4.0 percent, the bank added.
     Guatemala's inflation rate has been relatively steady in recent months - it eased to 1.8 percent in May from 1.88 percent in April - and the central bank said its latest forecast show a moderation this year and in 2021, with inflationary expectations anchored to its target.
     The Bank of Guatemala, which has targeted inflation since 2005, currently targets inflation of 4.0 percent, plus/minus 1 percentage point.
     Guatemala's quetzal has been relatively stable since October 2018 and was trading at 7.7 to the U.S. dollar today, unchanged since the start of this year.
     Earlier this month the executive board of the International Monetary Fund  approved emergency financial assistance to Guatemala of US$594 million to help meet some of the cost of containing Covid-19 at a time of a hit to economic growth and a drop in remittances from abroad and lower exports.

    www.CentralBankNews.info