Peru: Central Bank keeps rates unchanged as inflation eases
December 6, 2012
At its 6 December monetary policy meeting, the Central Bank left the reference rate unchanged at 4.25%, in a decision widely expected by the market. The Bank's decision means that monetary authorities have kept interest rates unchanged for 19 consecutive months.
The Central Bank argued that its decision was justified as domestic growth is near its potential, ongoing global uncertainties persist and inflation continues to ease, with consumer prices having returned within the target range of 1% to 3% in November. Furthermore, monetary authorities expect inflation pressures to remain contained in 2013. The next monetary policy meeting is scheduled for 10 January.
Author: Ricardo Aceves, Senior Economist