Central Reserve Bank (BCR) Governor Julio Velarde stated on Wednesday that the risks associated with El Niño phenomenon and its impact on the global economy would be temporary.
"I do not think the risk posed by this (El Niño phenomenon) will be that long-lasting. It is temporary, yes, but it will affect us all," Velarde said during his participation in the 60th Annual Assembly of the Latin American Federation of Banks (Felaban). The event is being held in San Borja district, Lima, Peru.
In the BCR head's view, international markets will indeed experience a significant reaction, but the impact will be short-lived.
"It is a phenomenon that, so to speak, I do not think will drag the world down," Velarde remarked.
Fed rate hike
Regarding other macroeconomic outlooks, Velarde indicated that expectations of an interest rate hike by the U.S. Federal Reserve (Fed) to control inflation remain, while the dollar is showing greater strength.
"The market is expecting an interest rate hike. The dollar remains strong. The stock market is rising exceptionally," he noted.
Fuel price increases hinder inflation decline
The BCR governor also noted that fuel prices continue to rise sharply, making it difficult for the inflation rate to come down.
"Oil derivatives have increased considerably more. Diesel prices are at a level comparable to what they would be if oil were trading at US$200 (per barrel)," Velarde indicated.
"Despite all this, we are seeing prices decline in recent days. We will see what happens going forward," he pointed out.
(END) NDP/GDS/JJN/MVB
Publicado: 4/11/2026