Macchu Picchu Peru

Peru Monetary Policy November 2023

Peru: Central Bank cuts rates again in November

At its 9 November meeting, the Central Bank of Peru (BCRP) cut its key policy interest rate to 7.00% from 7.25%, delivering its third consecutive rate cut.

The decision to ease the monetary policy stance further was driven by declining headline and core inflation and stable market inflation expectations. Moreover, the Bank expects price pressures to continue their downtrend, with inflation moving within the Bank’s target range of 1.0–3.0% in early 2024. Meanwhile, economic indicators hinting at slowing activity also supported the reduction of the policy interest rate.

The Bank did not give explicit forward guidance in its press release; it reiterated that future adjustments to the reference rate would be conditional on new information on inflation and its determinants. Most of our panelists see further rate cuts next year in line with an expected decline in inflation. The next monetary policy meeting is scheduled for 14 December.

Meanwhile, Andrés Pérez and Julio Ruiz from Itaú Unibanco stated:

“We expect the central bank to continue easing its monetary policy stance, at the same pace, in the last meeting of the year (reaching a level of 6.75%), continuing until July 2024 (our end of 2024 policy rate forecast is at 5.00%). In our view, weak activity amid falling inflation supports our call.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest