The Board of Peru’s Central Reserve Bank (BCR) agreed to maintain the reference interest rate at 2.75%
in February 2019 after assessing different factors.
According to the financial entity, the year-on-year inflation rate and trend inflation indicators showed levels within the inflation target range in January.
On the other hand, the expected year-on-year inflation rate
was 2.48% in January, and economic activity indicators continue showing signs of dynamism, even though the output level remains below its potential.
In addition, the BCR stated that risks on global economic activity —associated with commercial tensions
— remain, although lower volatility has been observed in international financial markets.
In this context, the year-on-year inflation rate is projected to remain around 2%, within the target range.
“The Board considers appropriate to maintain an expansionary monetary policy stance, while inflation expectations remain anchored in a context in which the level of economic activity
is below its potential level.