Peruvian Monetary Policy Pause Continues
April 12, 2012
During the year between May 2010 and May 2011, the Central Reserve Bank of Peru implemented ten rate hikes totaling 300 basis points, but no changes have been made since May 2011. Officials left the reference rate at 4.25% following this month’s meeting. CPI inflation has been exceeding the 1-3% target range. However, officials are confident that the overshoot will not persist because much of the spike was caused by temporary factors. Consumer prices increased 0.8% on month in March, most since July 2011, and 4.23% on year. A statement from the BRCP perceives economic activity to be near long-term trendline. The Peruvian sol is at a 15-year high.
Copyright 2012, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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