Peru’s central bank has maintained its benchmark interest rate at 4.75%, aligning with analyst expectations. Following a reduction from 7.75% since September 2023, the country retains one of Latin America’s lowest rates. The inflation rate stabilized at 1.97%, within the target range, while the bank predicts core inflation will also decrease.
On Thursday, Peru’s central bank decided to maintain its benchmark interest rate at 4.75%, consistent with analysts’ forecasts. Since September 2023, the nation has gradually decreased this key lending rate from a previous high of 7.75%, marking one of the lowest in Latin America.
The inflation rate in Peru concluded 2024 at 1.97%, remaining within the central bank’s target range of approximately 2%, with a permissible variation of one percentage point. In January, consumer prices experienced a slight monthly decrease of 0.09%, following a marginal rise of 0.11% in December.
A statement from the central bank indicated that it anticipates annual inflation will approach the lower limit of its target range in the upcoming months. Core inflation, excluding volatile food and energy prices, is also projected to trend down towards the target’s midpoint.
This decision comes after a 25 basis point reduction in early January, which the bank described as bringing the rate to “neutral territory.” Future adjustments will depend on updated data regarding inflation and its components. The bank acknowledged ongoing global uncertainties stemming from trade policies and international conflicts.
In summary, Peru’s central bank has held its benchmark interest rate at 4.75%, illustrating its cautious approach amidst fluctuating economic conditions. With inflation remaining within target range and indications of moderation in both annual and core inflation, the bank is prepared to assess further adjustments based on emerging data.
Original Source: www.tradingview.com
