Central Reserve Bank of Peru

July 10, 2015

Peru’s central bank Board kept its interest rate benchmark at 3.25%, which lies below the level of inflation even though inflation accelerated from 3.0% in April to 3.54% in June and despite an uptick also in expected inflation that was observed recently.  Four reductions of 25 basis points in the interest rate were engineered in November 2013, July and September of last year, and January 2015.  The last of these easings established to current 3.25% level.  A statement from the Board stands by the view that the rise in inflation reflects supply-shocks that will be temporary.  The economy is growth below trend, global recovery signals have been mixed lately, and financial markets are showing volatility around the world.  Expected inflation still lies within the ceiling of the central bank’s 1-3% target range.  The next meeting is scheduled for August 13.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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