Interest Rate in Peru
Peru - Interest Rate
Central Bank keeps rates on hold at over nine-year low at first meeting of the year
At its monetary policy meeting on 9 January, the Central Bank of Peru (BCRP) held the policy interest rate steady at 2.25%, the lowest since July 2010. The Bank last cut the key rate by 25 basis points in November, the second of the two cuts delivered last year. The Central Bank’s decision matched analysts’ expectations.
Within-target inflation, steady and moderate inflation expectations and soft economic activity prompted the Bank to hold its ground. Inflation was stable at November’s 1.9% in December, thus remaining below the midpoint of the Central Bank’s target range of 1.0%–3.0%. Meanwhile, economic activity picked up less than expected in Q3, and only limited improvements in business confidence and weak public capital spending in the final quarter of last year suggest the economy remains in a relatively soft patch.
The Bank did not provide any meaningful forward guidance in the accompanying press release, although November’s communiqué stated that the latest cut did “not necessarily imply additional interest rate reductions”. That said, monetary policy will likely remain expansionary and further rate cuts could be delivered this year if the output gap narrows slower than expected, given inflation is projected to remain close to the midpoint of the target band.
The next monetary policy meeting will be held on 13 February.
The FocusEconomics panel sees the monetary policy rate ending 2020 at 2.13% and 2021 at 2.75%.
Peru - Interest Rate Data
|Policy Interest Rate (%)||4.00||3.50||3.75||4.25||3.25|
5 years of economic forecasts for more than 30 economic indicators.
Peru Interest Rate Chart
Source: Peru Central Bank.
|Bond Yield||0.0||-0.60 %||Nov 08|
|Exchange Rate||3.31||-0.06 %||Jan 01|
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January 15, 2020
In November, economic activity grew 1.9% year-on-year, decelerating slightly from October’s 2.1% outturn and surprising market expectations on the downside.
January 10, 2020
Peru’s trade balance recorded a USD 669 million surplus in November, larger than October’s USD 416 million surplus but smaller than the USD 739 million deficit recorded in the same month last year. Exports fell 6.4% year-on-year in November (October: +3.4% year-on-year), weighed down by plunging foreign sales of mining products and of oil and natural gas, only partially offset by surging exports of fishing products.
January 10, 2020
The business confidence indicator rose from November’s 49.7 points to 51.0 points in December.
January 9, 2020
At its monetary policy meeting on 9 January, the Central Bank of Peru (BCRP) held the policy interest rate steady at 2.25%, the lowest since July 2010.
January 3, 2020
Consumer prices in Metropolitan Lima rose 0.21% over the previous month in December, up from November’s 0.11% increase.