A Fifth Peruvian Central Bank Rate Hike

September 10, 2010

The Central Reserve Bank of Peru’s policy interest rate was lifted by 50 basis points to 3.0% as expected.  Five straight monthly increases total 175 bps, reversing a third of the cumulative reductions during February-August 2009.  Peru experienced sizzling economic growth of 8% in the first half of 2010.  While CPI inflation of 2.3% lies within the 1-3% target range, it’s trending higher and expected to be near the target ceiling on average for 2010.   There will be more rate hikes ahead as officials normalize policy.

Copyright 2010 Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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