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Peru Policy Interest Rate 5.75% (consensus 5.75%) in May-24

• The BCRP cut the policy rate to 5.75%, a move anticipated by consensus forecasts, reflecting a strategy to balance economic support with inflation control, following a period of rate decisions that defied expectations.
• Future policy decisions will be heavily influenced by ongoing assessments of inflation trends, economic indicators, and external economic risks, focusing on maintaining inflation within the established target range.
• The BCRP remains vigilantly prepared to adjust its monetary policy in response to new economic data, emphasizing a commitment to stability amid global economic uncertainties and potential market volatilities.

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

• The BCRP unexpectedly reduced the policy rate to 6.0% despite market expectations for no change after March’s inflation spike, which the BCRP considers transitory amid ongoing declines in year-on-year inflation rates.
• Future policy decisions will hinge on inflationary trends and global economic conditions, ensuring the bank remains agile in its monetary policy approach.
• The bank’s readiness to adjust its policy stance in response to evolving economic data underscores a commitment to achieving its inflation target while managing potential external risks and financial market volatilities.

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.