Peru’s Reference Monetary Policy Rate Left at 4.25%

October 6, 2011

The Central Reserve Bank of Peru did not change policy this month but served notice that it is watching global growth risks very carefully in a  statement posted on its web site.  The statement also observes a recent moderation in Peruvian growth. 

This decision takes into account the slowdown observed in some components of expenditure and production, as well as the intensification of international financial risks.  Should these trends continue, the Central Bank will change its monetary policy stance.

Consumer price inflation was 3.7% last month, with a core rate of 3.4%.

Ten rate hikes totaling 300 basis points were implemented in the year between May 2010 and May 2011, but no changes have occurred subsequently.  In the previous tightening cycle, the benchmark interest rate crested at 6.5% in late 2008.

Copyright 2011, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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