Peru's Central Reserve Bank (BCR) has decided to
, thus expanding the monetary stimulus.
The BCR took into account that the year-on-year inflation rate and inflationary trend indicators remained within the target range in July 2019.
Besides, 12-month inflation forecast was cut to 2.32%; primary economic indicators showed a negative performance due to temporary supply shocks, while the non-primary activity registered signs of lower dynamism.
Likewise, public investment posted a lower execution between January and July. In addition, the risks concerning the global economic activity remain unchanged.
Over recent days, a greater volatility has been recorded in international financial markets, as the result of an
escalation of trade tensions.
Furthermore, BCR indicated this decision does not necessarily imply further reductions of the interest rate.
The financial entity also projected the year-on-year inflation rate will remain within the target range at around 2%.
(END) WRR/DTK/MVB