Guatemala Hikes Rate

Guatemala’s central bank tightened its rate by 25bp to 4.75%, the first revision since September 2009. The bank cites stronger-than-expected recoveries in advanced economies, favorable domestic growth, and the belief that the spike in international commodities prices reflects a long-term trend. JPMorgan believes the central bank is prioritizing inflation containment over fostering growth and curbing ongoing FX appreciation pressures.