The Board of Peru's Central Reserve Bank (BCR) maintained the reference interest rate at 2.75% after assessing different factors.
For instance, the year-on-year inflation rate and trend inflation indicators remained within the target range in September 2018.
Some economic activity indicators show temporary signs of lower dynamism and economic activity remains below its potential level of growth.
Also, greater financial volatility, associated with recent commercial tensions and uncertainty in the international markets, could affect global economic activity.
According to the bank, the year-on-year inflation rate is projected to remain within the target range in October and to gradually converge to 2.0% in the short-term.
The group considers it appropriate to maintain an expansive policy stance until it is certain that this convergence will take place when inflation expectations are anchored in a context in which the level of economic activity is close to its potential level of growth.
The Board also approved to maintain the annual interest rates on lending and deposit operations in domestic currency (not included in auctions) between BCR and the financial system.
(END) JJN/JJN/RMB
Published: 10/12/2018