Central Reserve Bank of Peru
November 10, 2016
Peru’s monetary policy interest rate was left at 4.25%. It’s been at that level since the last of four 25-basis point hikes between September 2015 and February 2016. Although CPI inflation of 3.4% in October was higher than in September, core remained flat at 3.0%, and the source of the rise is considered transitory by central bank officials. Expected inflation remains within target, and inflation is projected to converge on 2% within the policy time horizon. Officials view Peruvian economic fundamentals very positively, but the statement also observes international financial market uncertainties that need to be watched. A softer sol was responsible for the prior rise of inflation above target that triggered the four aforementioned rate increases around a year ago.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Peruvian monetary policy
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