Peru: Central Bank stays put in September
September 12, 2013
The Central Bank decided to maintain the reference rate at 4.25% at its 12 September monetary policy meeting, a decision expected by the market. The Bank has maintained the reference rate unchanged for 28th consecutive months.
As in previous statements, the Central Bank justified its decision to maintain interest rates unchanged given that economic growth has stabilized near to the sustainable long-term rate and inflation expectations remain anchored within the Bank's target range (1% - 3%). In addition, monetary officials reiterated that they will continue to take additional steps to relax reserve requirements in order to spur lending and promote economic growth. The next monetary meeting is scheduled for 10 October.
The majority of panelists polled by LatinFocus Consensus Forecast expect monetary authorities to maintain the reference rate unchanged this year, with a year-end projection of 4.23%. For 2014, the panel expects the monetary policy rate to end the year at 4.40%.
Author: Ricardo Aceves, Senior Economist