Peru: Central Bank keeps rates on hold
June 8, 2012
At its 9 August monetary policy meeting, the Central Bank decided to keep the reference rate unchanged at 4.25%, a move widely expected by the market. The Bank's decision means that monetary officials have kept the main monetary policy rate unchanged for 15 consecutive months. As in previous statements, the Bank underlined that its decision was justified as the deviation in inflation is mainly reflecting temporary supply factors and that the pace of economic growth is close to its potential. The Bank also acknowledged that uncertainty in global financial markets persists and that global economic activity is showing signs of slowing. The next policy meeting is scheduled for 6 September.
Author: Ricardo Aceves, Senior Economist