Peru Monetary Policy Extends Pause

November 11, 2010

The Central Reserve Bank of Peru retained a 3.0% reference monetary policy rate after the penultimate monthly meeting of 2010.  It had also not tightened in October following five consecutive rate increases totaling 175 basis points from May through September.  A statement from officials noted that core and total inflation are near the 2.0% target and that inflation expectations remain firmly anchored.  Domestic growth has been lively.  Electricity production, for instance, is up 9.6%.  However, officials anticipate moderating global growth.  Their next meeting will be on December 9th.

During 2009, the reference rate was cut from 6.5% to 1.25%.  A third of that easing has been reversed so far.

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



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