Peruvian monetary policy

Central Reserve Bank of Peru

May 11, 2017

Peru’s monetary policy rate was sliced by 25 basis points to 4.0%. The move, according to a released statement, reflected in-target inflation, slower GDP growth that’s below the potential GDP trend, and uncertainty that surrounds the policies of key developed economy governments. The interest rate cut is the first since a 25-basis point reduction in […] More

Central Reserve Bank of Peru

November 10, 2016

Peru’s monetary policy interest rate was left at 4.25%. It’s been at that level since the last of four 25-basis point hikes between September 2015 and February 2016. Although CPI inflation of 3.4% in October was higher than in September, core remained flat at 3.0%, and the source of the rise is considered transitory by central […] More

Central Reserve Bank of Peru Raises Interest Rate to 4.25%

March 10, 2016

Peru’s policy interest rate was increased by another 25 basis points in March, the fourth advance in four months and the fifth in seven months.  A released statement, like earlier ones, characterized the move as preventive.  Although temporary supply-side factors, including sol depreciation, lie behind the recent rise of inflation above 4.0%, expected inflation surpasses […] More

Central Reserve Bank of Peru Maintains an Easing Bias

February 14, 2014

The Peruvian reference interest rate, which was cut by 25 basis points to 4.0% in mid-November but left unchanged last month, was retained again after officials met yesterday.  However, reserve requirements were cut: “The rate of maximum mean reserve requirements and marginal reserve requirements in domestic currency was lowered from 14 to 13 percent….. The […] More

Peruvian Monetary Policy Kept on Hold

October 15, 2012

The main interest rate of the Central Reserve Bank of Peru was left at 4.25%, its level since a 25-basis point hike in May 2011 capped a ten-step uptrend from a trough of 1.25% in the Great Recession.  Five of those hikes totaling 175 bps were implemented between May 2010 and September 2010, and the […] More

Peruvian Monetary Policy Continues on Hold

July 12, 2012

The monetary policy reference rate of the Central Reserve Bank of Peru was cut slashed during the Great Recession from 6.5% to 1.25% by February 2009.  Rate normalization began in May 2010, and there were ten rate hikes over the ensuing year to 4.25%.  No further change has been made since May 2011, and that […] More