Central Reserve Bank of Peru
July 15, 2016
Late yesterday came the as-expected announcement that Peruvian monetary authorities decided once again to keep they main interest rate at 4.25%. Inflation had accelerated last year, in part because of a double-digit depreciation of the sol, and this had prompted four 25-basis point central bank rate increases that were implemented in September, December, January and, most recently, February of 2016. The statement today notes that expected inflation and actual inflation continue to recede. The 1-3% CPI target is expected to be reentered late this year. Consumer prices rose 3-1/3% in the year to May, down from 3.54% in April. GDP is expanding at around 4%.
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