Central Reserve Bank of Peru Cuts Interest Rate – Currency Thoughts
Central Reserve Bank of Peru Cuts Interest Rate
November 8, 2024
After cutting Peru’s central bank interest rate for an 11th time since September 2023, the BCRP board released a statement that at 5.0% “the real interest rate is approaching the level estimated as neutral. Headline and core consumer price inflation printed at 2.0% and 2.5% last month. Officials are projecting that inflation will remain within the target range over the forecast horizon but warn that warn investors not to assume “successive reductions in the interest rate.” Each of the 11 rate reductions thus far has been by 25 basis points, and cuts were skipped this year in March, June, July and October. The 5.0% is down from a peak of 7.75% from January to September of 2023 and at its lowest level since May 2022.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Reserve Bank of Peru
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