Peru’s central bank maintains the benchmark interest rate at 4.75%, aligning with analyst forecasts. Since September, the rate has been reduced from 7.75%. Inflation stood at 1.97%, within the target range, and is expected to remain stable despite global uncertainties affecting trade policies and international relations.
On Thursday, Peru’s central bank maintained its benchmark interest rate at 4.75%, matching analysts’ expectations. Since September 2023, the bank has been gradually reducing the key lending rate, which was previously high at 7.75% during the year’s initial months. Notably, Peru now enjoys one of the lowest benchmark interest rates in Latin America.
At the end of 2024, Peru’s inflation rate stood at 1.97%, comfortably within the central bank’s target range of approximately 2%, with a permissible variation of one percentage point. In January, consumer prices experienced a marginal decrease of 0.09% month-over-month, a slight contrast to the 0.11% increase observed in December.
The central bank anticipates that annual inflation will approach the lower limit of its target range in the forthcoming months. Additionally, core inflation, which excludes volatile items such as food and energy, is expected to continue declining towards the midpoint of this range. This decision follows a 25 basis point reduction in early January, which the central bank stated brought the rate to a “neutral territory,” although future adjustments will depend on newly reported data concerning inflation and its components.
In its announcement, the central bank highlighted ongoing global uncertainties related to the effects of trade policies and risks stemming from international conflicts.
In summary, Peru’s central bank has opted to keep the benchmark interest rate at 4.75%, reflecting analysts’ predictions. The rate has been gradually reduced from 7.75% since September 2023, correlating with a stable inflation rate of 1.97%. Future inflation trends will dictate potential adjustments, particularly against a backdrop of global economic uncertainty.
Original Source: www.tradingview.com
