Peru Monetary Policy October 2016

Peru

Peru: Central Bank holds interest rate at 4.25% in October

October 13, 2016

The Central Bank decided to maintain the reference rate at 4.25% for the eighth consecutive month at its 13 October monetary policy meeting, in line with market expectations.

According to the Central Bank, inflation expectations continued to decline gradually and inflation in July, August and September was very close to the Bank’s upper limit target of 3.0%. In the same months, upward pressures on inflation exerted by the rise in prices for food and services as well as the development of the exchange rate (USD-PEN) eased.

The Central Bank commented that the global economy continues to send mixed recovery signals in employment and production levels, while volatility in the global financial markets has cooled down. 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 10 November.

Panelists participating in the LatinFocus Consensus Forecast expect an average monetary policy rate of 4.24% at the end of 2016. For 2017, the panel projects an average rate of 4.44% at the end of the year.


Author: Marlène Rump, Senior Data Analyst

Sample Report

Looking for forecasts related to Monetary Policy in Peru? Download a sample report now.

Download

Peru Monetary Policy Chart


Peru Monetary Policy October 2016

Note: Central Bank Reference Rate in %.
Source: Peru Central Bank (BCRP).


Peru Economic News

  • Peru: Central Bank stands pat at June meeting

    June 13, 2019

    At its monetary policy meeting on 13 June, the Central Bank of Peru (BCRP) kept the policy interest rate unchanged at an eight-year low of 2.75%, matching market expectations.

    Read more

  • Peru: Business confidence at its lowest in seven months

    June 7, 2019

    The business confidence indicator declined from April’s 55.9 to 52.9 in May, but nevertheless remained above the 50-point threshold that separates optimism from pessimism, where it has been for over two years. May’s decline came on the back of worse assessments of current conditions, and of less rosy expectations on the economy as a whole and on the situation of the company.

    Read more

  • Peru: Trade surplus at six-month low in April

    June 7, 2019

    Peru’s trade balance recorded a USD 259 million surplus in April, narrowing from March’s USD 471 million surplus as well as from the USD 340 million surplus recorded in the same month of last year. Exports dipped 2.3% year-on-year in April, due to lower prices more than offsetting higher quantities, following March’s much sharper 10.7% plunge.

    Read more

  • Peru: Inflation at 20-month high in May

    June 3, 2019

    Consumer prices in Metropolitan Lima rose 0.15% over the previous month in May, down from April’s 0.20% month-on-month rise.

    Read more

  • Peru: Growth sinks to two-year low in Q1

    May 27, 2019

    GDP growth in the first quarter of the year fell to 2.3%, which was less than half Q4 2018’s 4.7% expansion and marked the slowest increase in two years.

    Read more

More news

Search form