Central Reserve Bank of Peru Raises Interest Rate to 4.25%
March 10, 2016
Peru’s policy interest rate was increased by another 25 basis points in March, the fourth advance in four months and the fifth in seven months. A released statement, like earlier ones, characterized the move as preventive. Although temporary supply-side factors, including sol depreciation, lie behind the recent rise of inflation above 4.0%, expected inflation surpasses target, and central bank officials have tightened policy to ensure that the spike in expected inflation isn’t self-fulfilling.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Peruvian monetary policy
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