Archive

August 14, 2025
NO.png

Norway: Holds Steady on Easing Path In August

  • Norges Bank unsurprisingly held rates at 4.25% as expected, maintaining a restrictive stance while inflation persists above 2% target.
  • The central bank signals 1-2 more cuts as likely in 2025 if the economy evolves as projected, with a September reduction widely anticipated by markets.
  • Trade policy uncertainty and sticky services inflation create upside risks, but the gradual normalisation path remains intact barring shocks.
August 14, 2025
PE.png

Peru: Cuts Paused As Space Squeezed

  • Peru's central bank (BCRP) held rates at 4.5% as expected, maintaining a cautious stance despite well-anchored inflation at 1.7% within the target range.
  • Global trade uncertainty weighs on the outlook, but future cuts are conditional on inflation data and external conditions affecting the economy.
  • The real rate is slightly above neutral, providing limited scope to ease, with a terminal rate around 4.0-4.25% reached by early 2026.

By country