Peru: Central Bank stays put at first meeting
January 12, 2012
At its 12 January monetary policy meeting, the Central Bank left the reference rate at 4.25%, in a move that was in line with market expectations. The Bank's decision marks the eighth consecutive month that authorities have left interest rates on hold. The Central Bank argued that its decision "takes into account the slower growth observed in some spending components, international financial risks and that the increase in inflation is principally due to temporary supply factors." In addition, monetary authorities stated that the external shocks that affected the pace of inflation last year are expected to fade going forward, with inflation converging to the Central Bank's 2.0% 1.0% inflation target. The next policy meeting is scheduled for 9 February.
Author: Ricardo Aceves, Senior Economist