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 August.
BCR took into consideration that the one-year ahead expected inflation rate as of August was 2.3% and that primary economic activity indicators have shown a negative performance in the first half, which began to reverse in July.
On the other hand, the bank indicated the
benchmark interest rate was maintained because global growth risks persist and trade tensions continue to create high international financial volatility.
"Year-on-year inflation is expected to remain within the target range and to average 2% over the forecast horizon, with a downside bias due to the possibility of a lower-than-expected increase in domestic demand," it stated.
Inflation
Furthermore, recent
inflation and economic activity indicators show that monthly inflation was 0.06% in August, bringing down year-on-year inflation to 2.04% from 2.11% in July.
"With monthly inflation excluding food and energy at 0.14% in August, the year-on-year figure increased to 2.20%, from 2.15% in July," it added.
(END) RGP/RGP/DTK/RMB
Publicado: 13/9/2019