Peruvian Central Bank Reference Rate Left Unchanged at 4.25%
November 11, 2011
This decision takes into account the lower growth being recorded by some components of expenditure, as well as the intensification of international financial risks. Should these trends continue, the Central Bank will change its monetary policy stance.
A statement from officials at the Central Reserve Bank of Peru from which the above passage is excerpted notes that CPI inflation of 4.2% in the year to October was higher than seen in September but that non-energy, non-food inflation was only at 2.3%. Moreover, the elevation of overall inflation is considered transitory.
During the Great Recession, the reference rate was cut from 6.5% to 1.25%. Later from May 2010 to May 2011, ten rate increases totaling 300 basis points were implemented.
Copyright 2011, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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