Macchu Picchu Peru

Peru Monetary Policy January 2023

Peru: Central Bank hikes again in December

At its 12 January meeting, the Central Bank of Peru raised its key policy interest rate by 25 basis points to 7.75%.

The Bank continued to tighten the monetary policy stance in order to reduce elevated inflation and bring down inflation expectations, both of which remain well above the 1.0–3.0% target range. Inflation rose to 8.5% in December from Novembers 8.4%, while inflation expectations over the next 12 months moderated from 4.7% to 4.3%. That said, the Bank expects inflation to move back into the target range of 1.0–3.0% in the fourth quarter of 2023 amid lower international prices for food and energy and decreasing inflation expectations.

The Bank reiterated that it was prepared to take additional steps to ensure inflation returns to target. That said, our panelists expect rates to decline this year as inflation moderates, partially thanks to the lagged effect of previous interest rate increases.

The next meeting is scheduled for 9 February.

The LatinFocus panel sees the monetary policy rate ending 2023 at 5.78% and 2024 at 4.35%.

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