Peru’s central bank has held its benchmark interest rate at 4.75%, maintaining a stable approach following recent rate cuts. The country’s inflation rate is at 1.97%, within target limits, and consumer prices saw a slight decrease in January. The central bank remains attentive to global economic uncertainties as it looks to future adjustments based on inflation data.
On Thursday, Peru’s central bank maintained its benchmark interest rate at 4.75%, aligning with analysts’ projections. This decision follows the gradual easing from a peak rate of 7.75% that was upheld during the early part of 2023. As a result, Peru now holds one of the lowest benchmark interest rates in Latin America.
For the year 2024, Peru’s inflation rate concluded at 1.97%, comfortably situated within the central bank’s target range of approximately 2%, with a permissible deviation of one percentage point. January displayed a slight decline in consumer prices by 0.09% monthly, a contrast to the 0.11% increase observed in December.
The central bank articulated expectations that annual inflation would approach the lower boundary of the target range in the upcoming months. Additionally, core inflation, excluding volatile food and energy prices, is anticipated to gradually move closer to the central target. This latest decision followed a 25 basis point reduction in early January, signaling the rate’s entry into what the bank regarded as “neutral territory.”
The central bank emphasized the need for ongoing monitoring, indicating that subsequent adjustments to the rate would depend upon fresh data concerning inflation and its components. Furthermore, the statement highlighted the global landscape, noting persistent “uncertainty over the impact of trade policies” and risks stemming from international conflicts.
In summary, Peru’s central bank has decided to keep the benchmark interest rate steady at 4.75%. This decision is influenced by a substantial decrease in inflation and reflects careful monitoring of economic indicators. The central bank remains vigilant, prepared to adjust rates based on future inflation trends and the international economic environment.
Original Source: www.tradingview.com
