Peru's Central Reserve Bank (BCR) has decided to reduce its
to 2.25%, thereby expanding the monetary stimulus.
Likewise, BCR considers that inflation in October stood at 0.11%. Thus, its inter-annual rate went from 1.85% in September to 1.88% in October 2019.
It adds that the monthly inflation rate —without food and energy— was 0.23%. Therefore, its annual rate went from 2.16% (September) to 2.34% (October) due to transitory factors, such as the increase in water, electricity, and transportation rates. Without these transitory factors, the monthly inflation would have been negative.
According to the issuing entity, business expectations in October pointed to a slight improvement
It also considers that the risks —concerning the world's economic activity due to commercial tensions— have been eased.
BCR notes that this decision does not necessarily imply additional interest rate reductions.