Peruvian Central Bank Reference Interest Rate Kept at 4.0%

March 13, 2014

There was a 25-basis point reduction of Peru’s central bank policy interest rate in November to 4.0%, the first change in 47 months, but it will continue to stay at that level.  Supply-side factors, as in Chile, lifted Peruvian CPI inflation during February, but that shock is projected to fade.  Officials expect inflation to settle back from 3.8% currently to the middle of their 1-3% target range.  GDP growth of around 5% last year was lower than in prior years, but a pick up is anticipated in 2014.  Reserve requirements were again cut.

Copyright 2014, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



Comments are closed.