Central Reserve Bank (BCR) Governor Julio Velarde on Tuesday affirmed that the liquidity injection into the Peruvian economy in recent months has been one of the largest ones on a global scale and, despite this, the country's economic fundamentals remain strong.
"This shows the markets' confidence in the Peruvian economy," he said during a corporate conference held by Diviso Grupo Financiero.
According to the economist, this would not have been possible if Peru were perceived as a country with low credibility regarding the implementation of its macroeconomic policies.
As of August, the annual growth rate of liquidity in Peru reached 25.8%, followed by the United States (23.2%) and Brazil (17.4%).
"Peru and the United States have seen the largest growth in liquidity in recent months," he stated.
Loans rise
Velarde underlined that the same occurs with loans. "In a recessionary environment like the current one, due to lockdown measures, BCR reacted countercyclically, significantly
increasing the number of loans granted to the private sector," he noted.
The BCR Governor said that this expansionary stance —one of the biggest ones in the world— is supported by the high credibility of the Peruvian monetary policy.
"Together with China, this is the country where loans have seen the largest increase," he explained.
(END) SDD/JJN/RMB
Published: 10/20/2020