Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Interest Rates

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 

Honduran economy seen shrinking more after storms, central bank cuts rates

11/23/2020 | 06:00pm EST

TEGUCIGALPA, Nov 23 (Reuters) - The Honduran central bank said on Monday that devastation caused by Hurricane Eta will shave an additional percentage point from economic growth, which along with the fallout from coronavirus will lead to a contraction of 8-9% in 2020.

"Taking into account the damage caused by Storm Eta, we have made a new calculation and the contraction increases by 1 percent, and once you include the forecast for COVID-19, we are talking about a range of between 8 and 9 percent," said central bank president Wilfredo Cerrato.

That would make it the sharpest recession on record. The current nadir was in 1954, when the Honduran economy contracted by 6.5%, according to the central bank president.

To prop up the Central American nation's ailing economy, the central bank cut its benchmark interest rate by 75 basis points to 3.0%, its lowest level since 2005.

"The monetary policy rate has been lowered to 3 percent from 3.75 (percent) to ease and stimulate credit," Cerrato said.

Earlier this month Honduras and neighboring Central American nations were walloped by the one-two punch of Eta and a few days later Hurricane Iota, which unleashed torrential rains that caused widespread deadly flooding and mudslides. (Reporting by Gustavo Palencia; Writing by Anthony Esposito; Editing by Frank Jack Daniel and David Gregorio)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
IOTA (IOT/BTC) 0.00% 1.3E-5 Real-time Quote.40.00%
IOTA (IOT/ETH) -1.23% 0.000322 Real-time Quote.-8.44%
IOTA (IOT/EUR) -1.39% 0.35118 Real-time Quote.53.95%
IOTA (IOT/USD) -2.70% 0.42422 Real-time Quote.53.60%
Latest news "Interest Rates"
12:45aUbs says low and persistently negative interest rates and expectations of continuing easy monetary policy will remain headwinds to net interest income, while supporting market sentinment
RE
12:37aChina's short-term money rates jump to pre-COVID levels on tighter cash conditions
RE
01/25Mexico's Antitrust Commission Fines Banks, Traders in Bond Probe
DJ
01/25ECB focuses on bank credit, bonds in gauging financing conditions - Lane
RE
01/25Oman electricity transmission company hires bank abc, first abu dhabi bank, jpmorgan, national bank of oman and standard chartered for usd bonds - document
RE
01/25Oman electricity transmission company hires banks for 7-yr or 10-yr bonds - document
RE
01/25Italian bond yields drop on talk of new government without election
RE
01/25Bank of England told to stop buying 'high carbon' bonds
RE
01/25ECB to invest own cash in BIS's green bond fund
RE
01/25Italian bond yields edge off highs, politics in focus
RE
Latest news "Interest Rates"