Peru's Central Reserve Bank (BCR) has decided to
maintain its benchmark interest rate at 2.50%, taking into account that the year-on-year inflation rate and inflation trend indicators were within its target range in September.
BCR took into consideration that the one-year ahead expected inflation rate as of September was 2.21% and that primary industries’ weak performance during the first half of the year began to reverse in July, adding that non-primary economic activity continue to recover.
"The recovery of public investment in September, after a lower performance in January-August, is expected to continue in the remainder of the year," it stated.
On the other hand, BCR took into account that global growth risks persist as trade tensions continue.
"Year-on-year inflation is expected to remain within the target range and to grow at about 2.0% over the forecast horizon, with a downward bias due to the possibility of a lower-than-expected increase in domestic demand," it explained.
Inflation
Furthermore, recent economic activity and
inflation indicators show that monthly inflation was 0.01% in September, bringing down year-on-year inflation to 1.85%, from 2.04% in August.
"With monthly inflation excluding food and energy at 0.01% in September, the year-on-year figure decreased to 2.16%, from 2.20% in August," it added.
(END) MDV/MDV/RMB
Publicado: 11/10/2019