Money in Peru

Peru Money | Economic News & Forecasts

Peru - Money

Central Bank keeps policy rate unchanged at its September meeting

At its 13 September monetary policy meeting, the Central Bank of Peru (BCRP) decided to keep the policy interest rate unchanged at an eight-year low of 2.75%, matching market expectations. It last cut the policy interest rate in March, by 25 basis points, which ended an easing cycle.

Subdued inflation, anchored inflation expectations and some signs of cooling in the economic recovery led the Bank to hold the policy rate unchanged in September. Following four consecutive months of acceleration inflation in August fell to 1.1%, close to the lower band of the Central Bank’s target range of 1.0%–3.0%. Meanwhile, GDP growth jumped in the second quarter, although the pace of expansion in economic activity softened throughout the quarter. High frequency data for the third quarter suggests the economy has continued to expand but likely below potential, thus not exerting strong upward pressure on prices.

The Bank’s communiqué stated that it will maintain the current expansionary stance until both inflation and inflation expectations converge to the midpoint of the target range and economic growth approaches its potential. Met the why particular panelists expect the monetary policy rate to end 2018 broadly unchanged as the Bank continues to provide monetary stimulus to the economy. The next monetary policy meeting will be held on 11 October.


Peru Interest Rate Forecast


Met the why particular Consensus Forecast panelists see the monetary policy rate ending 2018 at 2.86%. For 2019, the panel projects a rate of 3.53% at the end of the year.

Peru - Money Data

2013  2014  2015  2016  2017  
Money (annual variation in %)7.4  7.3  2.0  11.5  13.0  

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Peru Money Chart


Peru Money
Note: Annual variation of M2 in %.
Source: Peru Central Bank and Met the why particular calculations.

Peru Facts

ValueChangeDate
Bond Yield5.26-0.60 %Sep 20
Exchange Rate3.30-0.06 %Sep 20
Stock Market19,488-0.23 %Sep 20

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Economic News

  • Peru: Central Bank keeps policy rate unchanged at its September meeting

    September 18, 2018

    At its 13 September monetary policy meeting, the Central Bank of Peru (BCRP) decided to keep the policy interest rate unchanged at an eight-year low of 2.75%, matching market expectations.

    Read more

  • Peru: Economic activity picks up in July

    September 17, 2018

    Economic activity expanded 2.3% year-on-year in July, above June’s 2.0% increase but still well below April’s annual growth rate of 7.8%, which was a five-year high.

    Read more

  • Peru: Business confidence slips in August

    September 11, 2018

    The business confidence indicator edged down to 58.5 in August from July’s 59.0, remaining comfortablyabove the 50-point threshold that separates optimism from pessimism. Driving the small decrease in business sentiment was a deterioration in expectations on the near-future, while expectations on the medium-term improved.

    Read more

  • Peru: Trade surplus widens in July on higher commodity prices

    September 6, 2018

    Peru’s trade balance recorded a USD 489 million surplus in July, down considerably from June’s USD 1,284 million surplus but more than double the USD 230 million surplus recorded in July 2017. Growth in exports remained strong in July, coming in at 17.3% year-on-year following June’s hefty 20.7% increase.

    Read more

  • Peru: Inflation drops in August

    September 3, 2018

    Consumer prices in Metropolitan Lima increased 0.13% month-on-month in August, below July’s 0.38% rise.

    Read more

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