Peru Monetary Policy


Peru: Central Bank leaves interest rates unchanged, signals possible easing in reserve requirements

July 11, 2013

At its 11 July monetary policy meeting, the Central Bank kept the reference rate unchanged at 4.25%, in a decision expected by market analysts. The Bank has left the reference rate unchanged since May 2011.

As in previous statements, the Central Bank argued that its decision was determined by the fact that inflation remains within its target range, in a context where economic growth has stabilized around its sustainable long-term rate and uncertainty in global financial markets remain. Monetary officials reiterated that "the Directory remains alert to projections for inflation and its determinants in considering future adjustments in the monetary policy instruments". The next monetary policy is scheduled for 11 July.

Earlier, on 26 June, the Central Bank set a 20% limit on reserve requirements denominated in national currency and 43% on those denominated in foreign currency. Monetary officials have risen reserve requirements five times this year, but in its accompanying statement the Bank stated that it may start lowering them if needed, in order to spur lending and promote growth.

A majority of panellists polled by LatinFocus Consensus Forecast expect that monetary authorities will maintain the reference rate unchanged this year, with a year-end projection of 4.33%. For 2014, the participants expect the monetary policy rate to end the year at 4.62%.

Author:, Senior Economist

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Peru Monetary Policy Chart

Peru Monetary Policy July 2013

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

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