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.



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