Peruvian Monetary Policy Rate Left at 4.25%

January 10, 2013

In a statement explaining the decision to leave Peru’s central bank interest rate at 4.25% where such has been since a rate hike in May 2011, the Central Reserve Bank said,

This decision is based on the fact that inflation continues to decline and that it has returned to the target range after the shocks on the side of supply partially reversed in a domestic context characterized by an economic pace of growth close to the economy‚Äôs potential growth and in an external context still characterized by high uncertainty.  The Board oversees the inflation forecasts and inflation determinants to consider future adjustments in monetary policy instruments.

Peru’s inflation target is 1-3%, and monetary authorities are projecting that inflation will converge upon 2% during 2013 in spite of continuing robust growth.

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