Central Reserve Bank of Peru Leaves Key Interest Rate Benchmark at 3.5%
October 9, 2014
There had already been three Peruvian central bank cuts since November 2013, most recently at the previous meeting in September. Each reduction was a quarter of a percentage point. While not cutting again this month, a released statement from the central bank promised to “implement additional monetary easing measures if it is necessary” and did cut its reserve requirement further to 10.5% from 11%. Inflation of 2.74% is within the prescribed 1-3% corridor and expected to converge on the 2% midpoint next year, plus indications of expected inflation show consistency with the central bank’s target. Economic activity continues to expand more slowly than its long-term trendline. Before November 2013, monetary policymakers had not cut rates since February 2010.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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