The current TPM remains at 7.0%, where it has been since May of 2012, as part of measures to control inflation to the single digits, encourage savings, and safeguard the country’s external position, according to the Honduras Central Bank of Honduras’s (BCH – Banco Central de Honduras) Comportamiento de la Economía Hondureña (CHE).
Currently, Honduras has the highest TPM in the region, according to the Executive Secretariat of the Central American Monetary Council (SECMC – Secretaría Ejecutiva del Consejo Monetario Centroamericano), next is Guatemala, with a rate of 5.25%, Costa Rica follows, whose value has dropped to 4.0% in May, on the grounds that the economy showed slow growth, and finally El Salvador and Nicaragua, which have no defined TPM.
“The world economy is in recession. All the world’s central banks lowered their interest rates. The TPM on the U.S. Federal Reserve is close to zero (0.25%) since 2009, with the idea that this rate is consistent with the need to encourage investment and employment,” said Rafael Delgado, President of the CHE.
“They are not afraid of inflation, because this can only be generated when the capabilities of the country are being used at 100%; and now we are in a bad situation. A reduction in the TPM to have positive effects on market rates should not be in conflict with the other objective, which is to fight inflation,” he added.
For Delgado, the pace of price growth today is influenced by factors such as low yields, loss of crops due to climatic events or by difficulties in food imports.