Peru: Central Bank leaves the reference rate unchanged at its latest meeting
December 7, 2011
At its 7 December monetary policy meeting, and the last of 2011, the Central Bank left the reference rate at 4.25%, in a decision broadly expected by private sector analysts. The Bank's decision marks the seventh consecutive month that officials have left interest rates on hold. In the accompanying statement, monetary officials argued that slower economic growth, particularly in some components of spending, together with heightened uncertainty in the global financial markets and a moderation in global economic growth were the main factors behind their decision. They further stated that external shocks continue to affect consumer prices, but argued that once these shocks have cleared, inflation will return to within the Bank's target range of 2.0% 1.0%. The next policy meeting is scheduled for 12 January.
Author: Ricardo Aceves, Senior Economist