Guatemala central bank held its key interest rate at 5% following a 25 bps increase in April and a total 325 bps hike since April 2022. Economic indicators were mostly aligned with this and next year’s projected economic growth of 2.5-4.5%. Inflation expectations were moderating, with the 2023 headline inflation predicted to be at the upper end of the 3-5% target range before stabilizing within the target range at the start of 2024. The bank reiterated its commitment to implement necessary measures to gradually align inflation with its target.