decided to continue its expansionary policy stance, maintaining the reference rate at 0.25% and implementing further liquidity injection operations, in light of the following developments:
Year-on-year inflation increased from 2.4% in February to 2.6% in March due to supply factors that led to higher prices of some goods.
Likewise, trend inflation remains in the lower part of the target range.
"Year-on- year core inflation was 1.8% in March," it pointed out.
The bank stated that one-year ahead expected inflation was 2.2% in March.
Likewise, leading indicators continued to recover in March and most firms' growth expectations are in optimistic territory.
"Global economic activity is expected to be more pronounced in next quarters as vaccination process continues around the world and significant stimulus packages are issued in United States," it said.
Furthermore, the Board deemed as appropriate to maintain a strong expansionary monetary stance for as long as the negative effects of the pandemic on inflation and its determinants persist.
"The BCRP will continue to take the necessary steps to sustain the payments system and credit flows, and stands ready to expand monetary stimulus using a range of instruments," it added.