Central Reserve Bank of Peru

March 13, 2015

Peru’s central bank interest rate was left unchanged at 3.25% for a second straight month.  Four prior cuts, each of 25 basis points, were implemented in November 2013, July and September of last year, and January 2015.  However, bank reserve requirements were reduced at the March 2015 meeting to 8.5% from 9.0%, matching the size of a cut implemented at February’s meeting.  A released statement reiterates points made in last month’s statement:

  1. In forward guidance, the bias of policy remains toward ease, contingent on needs.
  2. Peru is experiencing a weak economic cycle, with GDP expanding below its potential.
  3. Inflation is well-anchored and consistent with the central bank’s medium-term goal.
  4. The global recovery is a mixed one.  Financial and foreign exchange markets exhibit heightened volatility.

The next policy meeting is scheduled for April 9.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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