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.
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