Central Reserve Bank of Peru’s Policy Interest Rate Left Steady at 3.5%

October 12, 2017

At Board meetings in May, July and September, three of the four 25-basis point central bank interest rate hikes implemented between September 2015 and February 2016 were reversed. A reversal of supply shocks enabled inflation to drop back into the 1-3% target range in September after spiking to 3.2% in August, but officials had anticipated such and eased policy at the previous meeting in the middle of last month. A statement released today reiterates that GDP is expanding more slowly than its supply-side potential pace but also expresses some optimism about growth: “The indicators of business expectations have continued to improve in September and remain
on the optimistic side. Expectations of GDP growth for 2017 show rates between 2.5 and 2.9 percent.”

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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