Presidente del BCR, Julioi Velarde (izquierda) y el Director Global de Investigación de Mercados Emergentes de J.P. Morgan, Luis Oganes, reunidos en Londres. Foto: Cortesía.
14:34 | London (UK), Nov. 1.
Institutional foreign investors see Peru in a very "positive" way due to its macroeconomic strength in the region, J.P. Morgan Emerging Markets Research Global Director Luis Oganes affirmed Wednesday.
The J.P. Morgan officer explained such positive appraisal is based on the fact that —despite the recent downturn— Peruvian economy has "the
highest growth rate, in average terms, in Latin America."
"It [Peruvian economy] has fewer imbalances, and it has space for a countercyclical
fiscal policy that many other countries do not have," Oganes expressed.
Credit Ratings
In addition, the J.P. Morgan director underlined Peru is one of the countries that has managed to sustain its credit ratings with the big three credit rating agencies.
According to the Central Reserve Bank (BCR), Standard & Poor's (BBB+),
Moody's (A3), and
Fitch (BBB+) maintain the Inca country's investment grade with 'stable' outlook.
"Many countries in the region —including all of our
Pacific Alliance partners Chile, Colombia, and Mexico— have had their credit ratings downgraded or a negative outlook, but Peru has not," Oganes pointed out.
"This means there is confidence in Peru's economic management and in the fact that the economy is strong enough to absorb external shocks," he added.
BCR Reference Rate
J.P. Morgan also projects another 25bps cut in BCR's policy rate in response to the fall in inflation rates.
"We expect the Central Reserve Bank to lower its monetary policy rate one last time, because it has already cut it by 75bsp [since December 2016] […]. I think that is enough for companies to feel more at ease with the economic rebound, to start taking out loans and investing," Oganes concluded.
Remarks were made during a joint presentation on Peru's economic outlook with Central Reserve Bank (BCR) Governor Julio Velarde as part of the
13th inPERU Road Show – Europe.
inPERU
The 13th inPeru Road Show delegation is composed of over 50 members, including State Ministers Bruno Giuffra (Transport and Communications), Cayetana Aljovin (Energy and Mines), as well as Central Reserve Bank (BCR) Governor Julio Velarde.
inPERU is a nonprofit association supported by the Peruvian government and founded by the main business organizations of the national market.
The association seeks to promote investment opportunities in the country and contribute to the development of Peruvian capital and financial markets.
Government bodies endorsing inPERU include the Ministries of Economy and Finance, Foreign Affairs, as well as Foreign Trade and Tourism. Central Reserve Bank (BCR), Superintendence of Banking, Insurance and Private Pension Funds Administrators, Superintendence of Securities Market and the Private Investment Promotion Agency (ProInversion) also support the association.
(END) MDV/RGP/MVB
Published: 11/1/2017