Archive

Peru Policy Interest Rate 6.25% (consensus 6.0%) in Mar-24

• The Central Reserve Bank of Peru (BCRP) unexpectedly maintained its policy rate at 6.25%, against consensus expectations for a cut. It signalled a careful approach to managing inflationary pressures while initiating a complementary easing through reduced reserve requirements.
• This policy decision focuses on liquidity enhancement and economic stimulation without exacerbating inflationary risks, reflecting a nuanced balance in monetary policy strategy.
• Future adjustments to the BCRP's monetary stance will be closely tied to inflationary trends and economic indicators, with a steadfast commitment to guiding inflation back within the target range amid global uncertainties and domestic economic challenges.

Peru Lima CPI Inflation 0.56% m-o-m (consensus 0.2%) in Feb-24

- Lima's CPI inflation in February 2024 exceeded expectations, with a 0.56% m-o-m increase, the highest since March 2023.
- The resurgent inflation rate surpasses the one-year average by 0.29 percentage points.

Peru Policy Interest Rate 6.25% (consensus 6.25%) in Feb-24

• The BCRP reduced the reference rate by 25bps to 6.25% in response to favourable inflation data and a downward trend in global inflation, indicating an adaptive and data-driven approach to monetary policy.
• Future policy adjustments will hinge on a comprehensive analysis of inflation trends, economic activity indicators, and external economic risks, maintaining a balanced approach towards achieving the inflation target.
• The Bank’s vigilance towards climate risks and international conflicts underscores its proactive stance in mitigating potential inflationary pressures and stabilizing economic growth.

Peru Lima CPI Inflation 0.02% m-o-m (consensus 0.2%) in Jan-24

- Peru Lima CPI inflation in January 2024 grew at a significantly lower rate of 0.02% compared to the consensus estimate of 0.2%, marking the lowest growth rate since November 2023.
- The current inflation rate is 0.23 percentage points below the one-year average, indicating a subdued price environment with potentially broader implications for policymakers and investors.