Peruvian Interest Rate Cut – Currency Thoughts
Peruvian Interest Rate Cut
September 13, 2024
There has been a 25-basis point further cut in the reference interest rate of the Central Reserve Bank of Peru. The new 5.25% level constitutes a 27-month low and is down from the 7.75% peak maintained from June 2023 until September 2023. According to a released statement, “Year-on-year inflation is projected to stay within the target range over the forecast horizon, and core inflation is expected to follow a decreasing trend. However, financial market volatility has increased, and international financial conditions remain restrictive. Additionally, risks stemming from international conflicts persist.” The latest 2.03% rate of CPI inflation is in the middle of the 1-3% target range, but officials are being careful about not letting policy easing getting ahead of itself.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Reserve Bank of Peru
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