Money in Peru
Peru - Money
Central Bank stands pat at first meeting in 2019
At its monetary policy meeting on 10 January, the Central Bank of Peru (BCRP) kept the policy interest rate unchanged at an eight-year low of 2.75%, matching market expectations. It last cut the policy interest rate in March 2018, by 25 basis points, which ended an easing cycle.
Within-range inflation, anchored inflation expectations and firming but still below-potential economic activity led the Bank to hold the policy rate unchanged in January. Inflation came in at 2.2% in December, matching November’s result and comfortably remaining within the Central Bank’s target range of 1.0%–3.0%. Meanwhile, economic activity accelerated in October, while both business and consumer confidence strengthened in November and December. This indicates the economy gained traction in the final quarter, although the pace of expansion likely remained below potential, thus not exerting strong upward pressure on prices.
The Bank’s communiqué stated that it will maintain the current expansionary stance until both inflation and inflation expectations remain within the target range and economic growth approaches its potential. FocusEconomics panelists expect the monetary policy rate to increase moderately this year, as the Bank tightens its monetary stance due to growth approaching its potential and as inflation picks up. The next monetary policy meeting will be held on 7 February.
FocusEconomics Consensus Forecast panelists see the monetary policy rate ending 2019 at 3.53%. For 2020, the panel projects a rate of 3.80% at the end of the year.
Peru - Money Data
|Money (annual variation in %)||7.4||7.3||2.0||11.5||13.0|
5 years of economic forecasts for more than 30 economic indicators.
Peru Money Chart
Source: Peru Central Bank and FocusEconomics calculations.
|Bond Yield||5.43||-0.60 %||Oct 15|
|Exchange Rate||3.33||-0.06 %||Jan 16|
|Stock Market||19,582||-0.23 %||Jan 16|
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January 15, 2019
Economic activity jumped 5.3% year-on-year in November, accelerating from October’s 4.2% increase and marking the strongest increase in six months.
January 11, 2019
The business confidence indicator rose to 58.0 in December from November’s 55.5, and thus moved further above the 50-point threshold that separates optimism from pessimism. A broad-based improvement in sub-indexes drove the increase in business sentiment.
January 11, 2019
Peru’s trade balance recorded a USD 586 million surplus in November, swinging into positive territory from October’s revised USD 74 million deficit (previously reported: USD 155 million deficit) and slightly lower than the USD 646 million surplus recorded in the same month of last year.
January 11, 2019
At its monetary policy meeting on 10 January, the Central Bank of Peru (BCRP) kept the policy interest rate unchanged at an eight-year low of 2.75%, matching market expectations.
January 10, 2019
The consumer confidence indicator published by GfK jumped from 94 in November to 99 in December, marking the best result since October 2017.