The Board of Directors of the
Central Reserve Bank of Peru (BCR) has 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:
Likewise, trend inflation remains in the lower part of the target range.
"Year-on-year core inflation was 1.7% in April," it pointed out.
The bank stated that one-year ahead expected inflation was 2.3% in April.
Furthermore, leading indicators moderated in April and most firms' growth expectations deteriorated compared to the previous month.
"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 developed countries," it said.
Moreover, 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 BCR 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.
(END) NDP/MVB
Published: 5/14/2021