Peru: Central Bank maintains interest rates unchanged
March 8, 2012
At its 8 March monetary policy meeting, the Central Bank kept the reference rate unchanged at 4.25%, in a decision widely expected by market analysts. The Bank's decision means that monetary officials have maintained the main monetary policy rate steady for ten consecutive months. As outlined in its accompanying statement, the Central Bank argued that its decision ?takes into account the slower growth recorded by some spending components, international financial risks and the fact that quickening inflation has mainly reflected temporary supply factors.? Moreover, monetary officials stated that current and forward-looking indicators continue to show a moderation in economic activity, and that waning global demand is likely to affect Peru's commodity exports. The next policy meeting is scheduled for 12 April.
Author: Ricardo Aceves, Senior Economist