Central Reserve Bank of Peru

Peruvian Central Bank Interest Rate Kept at 4.25%

April 15, 2016

Four previous 25-basis point rate increases were implemented last September, December, January and February in response to inflation considerably above the 1-3% target.  April’s was the second straight monthly meeting not to tighten further, and a statement released by monetary officials at the Central Reserve Bank of Peru noted that total and core inflation fell […] More

Central Reserve Bank of Peru

February 12, 2016

Peru’s monetary policy rate was raised 25 basis points for a third straight month and by such an amount for the fourth time since September.  It now stands at 4.25%.  Inflation accelerated to 4.6% in January (versus a target of 1-3%) from 4.4% in December and 4.2% in November.  But that’s not why monetary officials […] More

Tighter Peruvian Monetary Policy

January 15, 2016

A statement released after a 25-basis point hike of the Central Reserve Bank of Peru’s interest rate benchmark to 4.0% defended the tightening with the following points.  Expected inflation exceeds the 1-3% target.  So does actual CPI inflation of 4.4% in December.  Higher food prices and utility fees plus the effects of new sol depreciation […] More

Central Reserve Bank of Peru Hikes Interest Rate

December 11, 2015

A second 25-basis point increase has been engineered in Peru’s monetary policy rate to 3.75%.  An initial move of same size was decided this past September.  A statement from monetary authorities observes above-target inflation expectations and a recent acceleration of on-year CPI inflation to 4.17% in November from 3.66% in October.  The target range is […] More

Central Reserve Bank of Peru

November 16, 2015

As at October’s Board meeting, Peruvian monetary policy makers agreed not to change their key 3.5% interest rate.  A 25-basis point hike in September had reversed the direction of policy after cuts of that size engineered in November 2013, July 2014, September 2014 and January 2015.  Prior to September 2015, the monetary policy rate had […] More

Central Reserve Bank of Peru

October 16, 2015

A 25-basis point increase of Peru’s monetary policy interest rate at the previous policy meeting in September had been the first rate hike since May 2011 and followed 25-bp cuts in November 2013, July 2014, September 2014 and January of this year.  It is the hope of monetary officials that September’s action will not launch […] More

Central Reserve Bank of Peru

September 11, 2015

With higher food costs, a depreciation exchange rate, and upwardly drifting expected inflation lifting actual CPI inflation in Peru, the central bank raised its key interest rate to 3.50% from 3.25%.  This monetary policy tightening broke a streak of seven meetings without a policy change and constitutes the first interest rate hike since May 2011.  […] More

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 […] More

Central Reserve Bank of Peru

June 11, 2015

Peru’s central bank interest rate, 3.25% since a 25-basis point cut last January, was kept unchanged at the June monthly policy meeting.  Earlier cuts of that size were implemented in November 2013 and twice during the third quarter of last year.  Officials can’t afford to cut the interest rate further at this time because of […] More

Central Reserve Bank of Peru

April 10, 2015

Peru’s monetary policy interest rate had been cut by 25 basis points to 3.25% in January, and reserve requirements were reduced by 50 basis points each at the January, February and March meetings of the central bank Board.  At April’s meeting, the key interest rate, which had also been cut by 25 bps each in […] More