Another Rate Hike in Peru

September 9, 2022

The Central Reserve Bank of Peru’s policy rate had been raised for the 14th time since August 2021, but the incremental rise after this month’s policy review unexpectedly reverted back to the 25 basis points done initially. all the other increases had been by 50 basis points, and the rate in total has gone from 0.25% to 6.75%. That’s a larger increase than the acceleration of Peruvian CPI inflation from 5.0% in August 2021 to 8.4% last month. According to a released statement,

The outlook for global economic activity this year and the next has deteriorated due to the expected unwinding of stimulus in advanced economies, international conflicts, and persistent global supply bottlenecks, despite some improvement in recent months.

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