Peruvian Reference Rate Left at Low 1.25%

December 10, 2009

The Central Reserve Bank of Peru retained a 1.25% benchmark interest rate for a fourth consecutive meeting.  The rate had previously been cut in seven straight months by a total of 525 basis points from 6.5%.  A statement by monetary officials said that no change in that level is presently foreseen unless the good inflation prognosis changes.  CPI inflation had declined from 6.65% on year last December to 1.2% in September and 0.71% in October, and sub-target inflation is expected to continue especially in light of downwardly trending inflation expectations.

Copyright Larry Greenberg 2009.  All rights reserved.  No secondary distribution without express permission.


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