Peru: Central Bank holds interest rate at 4.25% in July
July 14, 2016
The Central Bank decided to maintain the reference rate at 4.25% at its 14 July monetary policy meeting, which was in line with market expectations. This was the fifth consecutive month in which the Bank left the rate unchanged.
According to the Central Bank, inflation expectations continued to decline gradually in June and the rise in prices for food and utilities is no longer exerting upward pressure on inflation.
The Central Bank commented that the global economy continues to send mixed signals and that volatility in global financial markets cooled down recently. Moreover, the Bank reported that Peru’s economic growth remains close to its potential. Based on this assessment, the Bank considered it appropriate to maintain the reference rate. The next monetary policy meeting is scheduled for 11 August.