Peruvian Central Bank Rate Hike
August 12, 2022
The Central Reserve Bank of Peru‘s policy interest rate was raised by another 50 basis points, bringing such to 6.5%. It has been increased by a half percentage point in each of the first eight months of 2022 as well as in each of the last four months of 2021. There was an initial 25-basis point hike in August 2021 from the pandemic low of 0.25%. In total, the central bank rate has risen more sharply than CPI inflation over the past year, and the statement released today implies that more rate normalizing moves lie ahead. Peruvian CPI inflation has swelled from 3.8% in July 2021 to 8.74% currently, which is just below June’s highest level since 2002. Officials seek to lower inflation to back to the top of their 1-3% target range by the latter part of next year.
Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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