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FocusEconomics: Peru's infrastructure projects to support fixed investment in 2018

00:00 | Lima, Jul. 12.

Rising public investment in reconstruction and infrastructure projects will support fixed investment this year, the latest FocusEconomics' LatinFocus Consensus Forecast report projected.

Moreover, sustained external demand for metals will boost exports and spur investment in the mining sector.

"Rising —but still moderate— inflation, together with a falling unemployment rate, will underpin consumer spending, which will also benefit from favorable financing conditions," it added.

Monetary policy

At its June meeting, Peru's Central Reserve Bank (BCR) decided to keep the monetary policy rate unchanged at 2.75%.

"The Bank's decision was motivated by subdued inflation; well-anchored inflation expectations; and below-potential, but strengthening economic growth," it underscored.

Thus, LatinFocus' panelists expect to see the monetary policy rate ending 2018 broadly unchanged at 2.81%. Likewise, they expect the rate will end 2019 at 3.53%.

(END) NDP/MVB

Published: 7/12/2018
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