Peru and Serbia
December 8, 2022
At other central banks, the restoration of price stability remains the dominant priority. The Central Reserve Bank of Peru’s interest rate benchmark has undergone a fourth straight 25-basis point hike, reaching 7.5% versus 0.25% at the end of 2020 and 2.5% at the end of 2021. Peruvian inflation accelerated 0.2 percentage points to 8.45% in November, well above the year-earlier level of 5.7% and not to mention the medium-term target that is considerably less.
And the National Bank of Serbia just agreed to a ninth monthly rate hike in a row, lifting its rate by 50 basis points to 5.0%. Officials had throttled by the incremental rate hike size to 25 basis points in July and August but then returned to half-percentage point moves in September. At 5.0%, the interest rate is still way below CPI inflation, which jumped to a record 15.0% in October from 14% in September and 6.6% in October 2021.
Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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