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Peru: Central Bank maintains benchmark interest rate at 2.75%

10:43 | Lima, Jul. 12.

Peru's Central Reserve Bank (BCR) decided to keep its benchmark interest rate at 2.75% after assessing different factors, it said in a recent release.

According to the financial entity, the year-on-year inflation rate and inflation trend indicators as of June were within the BCR's target range.

On the other hand, the one-year ahead expected inflation rate as of June was 2.48%.

Primary economic activity indicators show a weak performance as a result of temporary supply shocks, while non-primary activity maintains a moderate growth momentum.

Likewise, public investment has registered a slow pace in the first half of the year, which is expected to revert in the second half.

"Global growth risks persist, although international financial volatility has decreased due to expectations of a more expansionary monetary policy stance in developed economies," it underscored.

Inflation

The BCR stated the year-on-year inflation rate is expected to remain within the target range and converge towards 2.0% over the forecast horizon, with a downside bias due to the possibility of a lower-than expected increase in domestic demand.

The BCR considers that it is appropriate to maintain an expansionary monetary policy stance and pays close attention to new information on inflation and its determinants in order to assess future changes in this stance.

(END) WRR/RMB/MVB

Publicado: 12/7/2019