Peru: Central Bank leaves rate unchanged in January
January 9, 2014
The Central Bank decided to maintain the reference rate at 4.00% at its 9 January monetary policy meeting, which was in line with market expectations.
The Central Bank acknowledged that the Peruvian economy cooled down in the third quarter of 2013 due to weaker performance in the external sector. Meanwhile, the Bank also stated that inflation would remain at the upper band of the Bank's target range of 1%-3% in the coming months as a result of the delayed impact of recent supply shocks. However, the monetary authority sees inflation converging around 2.0% in the mid- and long-term. The next monetary policy meeting will be held on 13 February.
The majority of the panelists polled by FocusEconomics expect monetary authorities to maintain the reference rate unchanged at 4.00% this year. For 2015, the panel expects an average monetary policy rate of 4.37% at the end of the year.