Interest Rate in Peru
Peru - Interest Rate
Central Bank joins the doves in August
At its monetary policy meeting on 8 August, the Central Bank of Peru (BCRP) slashed the policy interest rate by 25 basis points to a nine-year low of 2.50%, broadly in line with analysts’ expectations. The Bank last cut the policy interest rate in March 2018, also by 25 basis points, which ended an easing cycle.
Within target inflation, easing inflation expectations and weak economic activity prompted the Bank to slash rates and follow the dovish trend sweeping across emerging economies. Inflation receded to 2.1% in July (June: 2.3%), thus sitting near the mid-point of the Central Bank’s target range of 1.0%–3.0%. Meanwhile, economic activity stagnated in April–May amid supply-side uncertainties and cooling public investment.
In its forward guidance, the Bank remarked that further rate cuts were not “necessarily” on the cards. Under current conditions, inflation is expected to trend near the mid-point of the target range, although sustained weakness in domestic demand could dent price pressures going forward.
The next monetary policy meeting will be held on 12 September.
Our analysts are still assessing the Central Bank’s decision to cut rates. Last month, FocusEconomics Consensus Forecast saw the monetary policy rate ending 2019 at 3.27% and 2020 at 3.67%.
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||5.43||-0.60 %||Oct 15|
|Exchange Rate||3.30||-0.06 %||Jul 31|
|Stock Market||19,957||-0.23 %||Jul 31|
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August 15, 2019
In June, economic activity grew 2.6% year-on-year, above May’s 0.6% lackluster outturn.
August 9, 2019
The business confidence indicator fell to 49.0 points in July from 49.8 points in June, the lowest print in 28 months.
August 8, 2019
Peru’s trade balance recorded a USD 802 million surplus in June (May: USD 79 million surplus), the highest print in six months, although came below the USD 1,170 million surplus recorded in the same month last year. Exports fell 12.2% year-on-year in June, due to both lower prices and quantities, following May’s stronger 14.4% drop.
August 8, 2019
At its monetary policy meeting on 8 August, the Central Bank of Peru (BCRP) slashed the policy interest rate by 25 basis points to a nine-year low of 2.50%, broadly in line with analysts’ expectations.
August 8, 2019
Consumer prices rose 0.20% over the previous month in July, contrasting June’s 0.09% month-on-month fall.