Central Reserve Bank of Peru
November 10, 2017
Peru’s policy interest rate has been lowered from 3.5% to 3.25%. This action follows three earlier 25-basis point cuts this year done in May, July and September. Taken together, this one percentage point of reduction offsets four 25-basis point rate increases between September 2015 and February 2016. The reversal is possible because of an ongoing decline of inflation, which is now in the middle of the target corridor. In the year to October, total and core consumer prices rose 2.04% and 2.35%. Growth has meanwhile picked up but still is below Peru’s perceived potential non-inflationary speed limit. Officials anticipate in-target inflation continuing next year.
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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