Money in Peru
Peru - Money
Central Bank stands pat at its August meeting
At its 9 August monetary policy meeting, the Central Bank of Peru (BCRP) decided to keep 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, by 25 basis points, which ended an easing cycle.
A faster economic expansion and rising, albeit still moderate, inflation have reduced the need for further monetary easing and drove the Bank’s decision to hold the policy rate unchanged in August. Although inflation in July moved further above the Central Bank’s midpoint of the target range of 1.0%–3.0%, it remains low—kept in check by a base effect due to supply disruptions last year following the coastal El Niño. Meanwhile, the economy likely did exceptionally well in the second quarter, following a notable acceleration in the first quarter. However, growth likely also remains 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 converge to the midpoint of the target range and economic growth approaches its potential. FocusEconomics panelists expect the monetary policy rate to end 2018 slightly above its current level, as the Bank continues to provide monetary stimulus to the economy. The next monetary policy meeting will be held on 13 September.
FocusEconomics Consensus Forecast panelists see the monetary policy rate ending 2018 at 2.86%. For 2019, the panel projects a rate of 3.53% 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||5.13||-0.60 %||Aug 14|
|Exchange Rate||3.32||-0.06 %||Aug 15|
|Stock Market||19,533||-0.23 %||Aug 15|
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August 13, 2018
Peru’s trade balance recorded a USD 1,164 million surplus in June, the highest print so far this year, widening from May’s USD 544 million surplus as well as from the USD 790 million surplus recorded in the same month of last year. Growth in exports remained robust in June, coming in at 17.5% year-on-year following May’s strong 18.8% increase.
August 13, 2018
At its 9 August monetary policy meeting, the Central Bank of Peru (BCRP) decided to keep the policy interest rate unchanged at an eight-year low of 2.75%, matching market expectations.
August 3, 2018
The consumer confidence indicator published by GfK remained stable at May’s 90 in June.
August 3, 2018
The business confidence indicator ticked up to 59 in July from June’s 58, moving further above the 50-point threshold that separates optimism from pessimism. Driving the increase in business sentiment was an improvement in expectations on the near-future, while expectations on the medium-term remained unchanged.
August 2, 2018
Consumer prices in Metropolitan Lima increased 0.38% month-on-month in July, above June’s 0.33% rise.