Peru's Central Reserve Bank (BCR) agreed to keep its reference interest rate unchanged at 2.75%
in December 2018 after having assessed different economic factors.
According to the financial entity, the year-on-year inflation rate and trend inflation indicators showed levels within the inflation target range in November.
On the other hand, the expected year-on-year inflation rate
was 2.48% in November, and economic activity indicators show higher dynamism in the fourth quarter, even though the output level remains below its potential.
Also, the BCR perceives greater risk on global economic activity and increased financial volatility, both associated with recent commercial tensions
and uncertainty in international financial markets.
In this context, the year-on-year inflation rate is projected to remain within the target range and around 2%.
The bank considers appropriate to maintain an expansionary monetary policy stance, while inflation expectations are anchored in a context in which the level of economic activity
is below its potential.