Central Reserve Bank of Peru

Central Reserve Bank of Peru

May 10, 2018

Peru’s policy interest rate, which underwent six 25-basis point cuts from May 2017 to March 2018, was kept steady after this month’s monetary policy review. While inflation rose in April, it reached only 0.5%, half of the target floor. According to a released statement, “the Board considers that it is appropriate to maintain an expansionary […] More

Central Reserve Bank of Peru

April 12, 2018

Being an even-numbered calendar month, Peru’s central bank board did not change its policy interest rate in April. The last six reductions, each by 25 basis points, were made at scheduled monthly meetings in the even months of May, July, September, November, January and March. The rate is now at 2.75%, and the statement accompanying […] More

Central Reserve Bank of Peru

January 11, 2018

Peruvian Central Bank Board members continued the pattern of cutting their policy rate every other monthly meeting. As they had done in May, July, September, and November, officials cut such by 25 basis points, and the new level becomes 3.0%. A released statement projects a further near-term decline of CPI inflation and core inflation. Inflation […] More

Central Bank Rates in Chile, Peru and Colombia Left Unchanged

December 14, 2017

The Central Bank of Chile’s main interest rate was retained at 2.5%, but a released statement expresses some concern about the effect of inflation staying below target might have on actual inflation. “The risks of a delay in the convergence of inflation associated to its current persistently low level are still present, so, if deemed […] More

Central Reserve Bank of Peru

November 10, 2017

Peru’s policy interest rate has been lowered from 3.5% to 3.25%. This action follows three earlier 25-basis point cuts this year done in May, July and September. Taken together, this one percentage point of reduction offsets four 25-basis point rate increases between September 2015 and February 2016. The reversal is possible because of an ongoing […] More

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 […] More

A 25-Basis Point Interest Rate Cut in Peru

September 15, 2017

Authorities at the Central Reserve Bank of Peru implemented the third 25-basis point cut of 2017 following moves in May and July. A released statement justifies this third cut, even in the face of higher inflation in August than July, by projecting a decline in trend inflation over coming months and noting both lower expected […] More

Central Reserve Bank of Peru

August 10, 2017

Peru’s monetary policy rate was left steady at 3.75%. Two reductions have already been made this year, each of 25 basis points in May and July. The four prior changes were increases, also each by 25 basis points, and the last of these moves was done in February of 2016. A statement after this month’s […] More

Central Reserve Bank of Peru’s Reference Rate Cut to 18-Month Low of 3.75%

July 13, 2017

Peru’s central bank rate 25-basis point cut this month was the second one of 2017 and returns the level to its lowest point since mid-December 2015 to mid-January of 2016. Both headline and core inflation are falling according to a released statement, and they are within the 1-3% target range. Expected inflation is also creeping […] More

Peruvian Monetary Policy Rate Left at 4.0% after Being Cut in May

June 9, 2017

The Central Reserve Bank of Peru Board had cut its interest rate four weeks ago in the first policy change in fifteen months. A statement released last Thursday after its June meeting reiterates the arguments made when policy was eased in May:┬áPeru has in-target inflation, which should continue over the next two years; GDP is […] More