Peru: Central Bank holds interest rate at 4.25% in November
November 10, 2016
The Central Bank decided to maintain the reference rate at 4.25% for the ninth consecutive month at its 10 November monetary policy meeting, in line with market expectations.
According to the Central Bank, inflation expectations are within the target range of 1.0% to 3.0%. The inflation rate in September and October was above the upper limit of 3.0%. The Bank stated that this was due to higher prices for fuel and some food items, an effect that should soon fade. Inflation is seen edging back down and falling within the target range in the next few months.
The Central Bank commented that the global economy continued to send mixed recovery signals in employment and production levels, and that the volatility in the global financial markets had picked up recently. Nonetheless, the Peruvian economy shows sound fundamentals and is growing at a healthy rate, the Bank stated.
Based on this assessment, the Bank considered it appropriate to maintain the reference rate. The next monetary policy meeting is scheduled for 15 December.