Peru: Central Bank holds interest rate at 4.25% in May
May 12, 2016
The Central Bank decided to maintain the reference rate at 4.25% at its 12 May monetary policy meeting, as the majority of market analysts had expected. The Bank has hiked the rate four times in the past nine months.
According to the Central Bank, inflationary pressures have cooled off as prices fell for services and some food products. In addition, the depreciation of the sol against the U.S. dollar has slowed down. The Bank also added that inflation expectations have started to decline.
The Central Bank commented that the global economy continues to send mixed signals regarding growth and that lower volatility was seen in financial markets. Regarding Peru’s economic growth, the Bank reported that it is rebounding and expects it to reach its potential this year. Based on this evaluation, the Bank considered it appropriate to hold the reference rate. The next monetary policy meeting is scheduled for 9 June.