Guatemala’s central bank maintained its key interest rate at 5.0% for the third consecutive month, following total rate hikes of 325 bps since April 2022. Policymakers observed that most activity indicators aligned with the projected economic growth for this year and next, estimated at 2.5 to 4.5%. Meanwhile, inflation trends downward, falling to 6.54% YoY in May from a February peak of 9.2%, and inflation expectations have likewise eased. The board expressed confidence in achieving end-of-year inflation within the 3 to 5% target range and reaffirmed its commitment to implementing necessary measures to sustain price stability.