Peruvian Interest Rate Unchanged

April 12, 2013

The reference interest rate of the Central Reserve Bank of Peru will continue to be 4.25%, where such has been since a 25-basis point increase in May 2011.  That hike culminated a series of increases totaling 175 basis points in 2010 and 125 bps in the first five months of 2011.  Officials had slashed the rate to 1.25% from 6.5% during 2009.

Economic conditions in Peru continue to offer a good mix of near-potential growth and inflation that is projected to converge later this year on the 2% target.  Both headline CPI of 2.6% and core of 3.5% are presently above target. 

The next policy meeting is scheduled for May 9.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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