Policy Interest Rate in Peru
The Monetary Policy Rate ended 2022 at 7.50%, up from the 2.50% end-2021 value and up from the reading of 4.00% a decade earlier. For reference, the average Monetary Policy Rate in Latin America was 18.90% at end-2022. For more interest rate information, visit our dedicated page.
Peru Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Peru from 2014 to 2024.
Source: Macrobond.
Peru Interest Rate Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Monetary Policy Rate (%, eop) | 2.25 | 0.25 | 2.50 | 7.50 | 6.75 |
Central Bank of Peru decreases interest rate in January
Latest bank decision: At its meeting on 10 January, the Central Bank of Peru (BCRP) decided to reduce the policy rate by 25 basis points to 4.75%, taking total rate cuts since mid-2023 to 300 basis points.
Monetary policy drivers: The key factors influencing the Central Bank's decision were recent inflation and future inflation projections that were comfortably within the BCRP’s 1.0-3.0% target range.
Policy outlook: The Central Bank suggested that the policy rate was now close to the neutral level, and forward guidance was open-ended. All our panelists see at least one extra rate cut between now and the end of the year, given inflation should remain muted.
Panelist insight: Credicorp Capital’s Luis Ortega said: “We still expect the BCRP to continue cutting the reference rate throughout the year, and for it to close 2025 between 4.25%-4.50%, as we indicated in our Quarterly Report published in Dec-24. This is in a context of controlled inflation (inflation closed 2024 at the midpoint of the target range) and a still-negative output gap that continues to narrow.” BBVA analysts said: “At BBVA Research, we anticipate a final 25-basis-point cut to the policy rate in the coming months, before the end of the second quarter, bringing it to what we estimate as the neutral level (4.50% in nominal terms). We also maintain our view that the timing of the cut will depend largely on developments in financial markets.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Peruvian interest rate projections for the next ten years from a panel of 25 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Peruvian interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Peruvian interest rate projections.
Want to get access to the full dataset of Peruvian interest rate forecasts? Send an email to info@focus-economics.com.
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