Peru Rate Decision: No Change
December 9, 2010
Following five consecutive monthly increases in Peru’s monetary policy reference rate, there have now been three meetings without a change in the 3.0% rate. The combined increase of 175 basis points reversed a third of the steep reduction of rates during the recession and left the rate at a more normal level. Meanwhile, Peruvian inflation of 2.2% last month was near the middle of the 1-3% target band, and inflation expectations remain anchored despite vibrant economic growth. Officials are sensitive about the risk of excessive capital inflows and have substituted higher reserve requirements as a safer way of reining in monetary stimulus.
Copyright 2010 Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Peru
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