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Peru Policy Interest Rate 6.75% (consensus 6.75%) in Dec-23

• The BCRP reduced the reference rate by 25bps to 6.75%, aligning with the economic consensus, driven by a consistent downward trend in both month-on-month and year-on-year inflation that signalled easing inflationary pressures.
• Future policy decisions will be shaped by ongoing inflation trends, global economic conditions, and domestic economic indicators, with a particular focus on managing risks such as climatic factors and external economic shocks.
• The Board’s commitment to adjusting its monetary stance in response to evolving economic data underscores a vigilant and responsive approach to ensuring inflation targets are met.

Peru Lima CPI Inflation -0.16% m-o-m (consensus 0.1) in Nov-23

- Lima's inflation rate in November 2023 decreased by 0.16%, deviating significantly from the consensus forecast of a 0.1% increase.
- Compared to the previous month, the inflation rate declined even further, recording a decrease of 0.32%. This is the highest negative inflation trend since August 2023.

Peru GDP Growth -1.29% y-o-y (consensus -0.7) in Sep-23

- Peru's GDP growth recorded a year-on-year decline of 1.29% in September 2023, falling short of the consensus forecast of -0.7%.
- This represents the lowest growth rate since May 2023 and a deviation of 1.13 percentage points below the one-year average, emphasizing the challenging economic conditions faced by Peru.

Peru Policy Interest Rate 7.0% (consensus 7.0) in Nov-23

• The BCRP reduced the reference rate to 7.00%, in line with economist forecasts, driven by a significant decrease in both month-on-month and year-on-year inflation rates, signalling easing inflationary pressures.
• Future interest rate decisions will be influenced by the trajectory of inflation and its determinants, with current trends indicating a continued downward movement towards the target range, moderated by external and climatic risks.
• The Board remains vigilant, ready to adjust monetary policy in response to new economic data and global economic conditions, emphasizing its commitment to maintaining inflation within the targeted range.