Peru: Central Bank leaves rates on hold for second consecutive month
July 7, 2011
At its 7 July monetary policy meeting, the Central Bank decided to maintain the reference rate at 4.25%, in a move widely expected by the market. The Bank's decision followed on another month that monetary officials left rates unaltered, after five consecutive rate hikes of 25 basis points since January this year. In its statement, the Bank argued that its decision reflects the moderation in economic activity and that inflationary pressures remained contained, with consumer prices easing in June. In addition, monetary authorities stated that indicators for global economic activity show weakness and greater uncertainty. The next monetary policy meeting is scheduled for 11 August.
Author: Ricardo Aceves, Senior Economist