Archive

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.

Peru Lima CPI Inflation -0.32% m-o-m (consensus 0.18%) in Oct-23

- CPI inflation in Lima, Peru declined by 0.32% month-on-month in October 2023, causing the annual rate to slow by 0.7pp to 4.3% y-o-y.
- The current inflation rate is below the one-year average and indicates surprisingly subdued inflationary pressures.

Peru GDP Growth -0.63% y-o-y in Aug-23

- Peru's GDP growth contracted by 0.63% year-on-year in August 2023, marking a slight improvement from the previous month's 1.3% decline.
- The ongoing negative growth is only the least bad since June 2023, so there is still a lot of work to do to recover from recent economic challenges.

Central Reserve Bank of Peru: Oct-23

• The Central Reserve Bank of Peru has strategically reduced the reference interest rate to 7.25%, in sync with external economist expectations, addressing ongoing inflationary pressures.
• While global and domestic inflation rates are showing a decline, the bank remains vigilant, considering potential risks from climatic factors, global economic moderation, and unforeseen external shocks.
• The bank’s monetary stance and revised interest rates for currency operations emphasize its commitment to economic stability, inflation targeting, and proactive monetary management.