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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.

Peru Policy Interest Rate 6.5% (consensus 6.5%) in Jan-24

• The BCRP reduced the reference rate by 25bp again to 6.50%, in sync with economists' expectations, driven by a consistent decrease in headline and core inflation.
• Future interest rate decisions will be data-driven, focused on inflation trends and economic indicators, with particular attention to managing risks such as El Niño and external economic conditions.
• The Board remains committed to adapting its monetary stance in response to evolving economic data, aiming to ensure inflation returns to the target range, indicative of a responsive and vigilant monetary policy approach.

Peru Lima CPI Inflation 0.41% m-o-m (consensus 0.3%) in Dec-23

- Peru's Lima CPI inflation rate exceeded expectations, rising by 0.41% in December 2023, the highest level since April 2023.
- Despite the increase, headline annual inflation slowed but remains too high at 3.2%.