Peruvian Central Bank Policy Rate Held Steady at 4.25%
September 9, 2016
Seven months have now passed without the Central Reserve Bank of Peru changing its interest rate. Previously such was lifted five times in the space of 7 meetings from September 2015 to March 2016, each by 25 basis points. Such more than offset four cuts from November 2013 through January 2015. The Board released a statement identifying the following pertinent factors behind their decision in September:
- Expected inflation is receding gradually.
- The economy is likely to expand about 4% per year in 2016-17, more or less consistent with its potential.
- Business sentiment is upbeat.
- Factors that had lifted inflation related to food, utilities, and peso depreciation are now reversing.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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