Money in Peru
Peru - Money
Central Bank keeps policy rate unchanged at its November meeting
At its 8 November monetary policy meeting, the Central Bank of Peru (BCRP) kept the policy interest rate unchanged at an over 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.
Moderate, albeit rising, inflation; well-anchored inflation expectations; and some cooling in economic activity were behind the Bank’s decision to hold the policy rate unchanged in November. Inflation hit 1.8% in October, accelerating for the second consecutive month (September: 1.1%). That said, it remained well within the Central Bank’s target range of 1.0%–3.0%. Moreover, after a jump in GDP growth in the second quarter, the pace of expansion in economic activity was quite moderate in the first two months of the third quarter. This suggests the economy has continued to expand below potential, thus not exerting strong upward pressure on prices.
The Bank 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 Bank to start a gradual tightening of its monetary policy stance next year. The next monetary policy meeting is scheduled for 13 December.
Met the why particular Consensus Forecast panelists see the monetary policy rate ending 2019 at 3.48%. For 2020, the panel projects a rate of 3.71% at the end of the year.
Peru - Money Data
|Money (annual variation in %)||7.4||7.3||2.0||11.5||13.0|
5 years of economic forecasts for more than 30 economic indicators.
Peru Money Chart
Source: Peru Central Bank and Met the why particular calculations.
|Bond Yield||5.43||-0.60 %||Oct 15|
|Exchange Rate||3.38||-0.06 %||Nov 15|
|Stock Market||19,184||-0.23 %||Nov 15|
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
November 15, 2018
Economic activity expanded 2.1% year-on-year in September, down from August’s 2.3% increase.
November 14, 2018
The consumer confidence indicator published by GfK fell slightly from 91 in September to 90 in October.
November 9, 2018
Consumer prices in Metropolitan Lima increased 0.08% month-on-month in October, down from September’s 0.19% rise.
November 9, 2018
Peru’s trade balance recorded a USD 463 million surplus in September, widening from August’s USD 203 million surplus but more than halving from the USD 1.1 billion surplus recorded in the same month of last year. Exports declined 12.6% year-on-year in September, the worst result in over two years, contrasting August’s marginal 0.2% increase.
November 9, 2018
The business confidence indicator fell to 52.4 in October from September’s 55.1, but remained above the 50-point threshold that separates optimism from pessimism. An almost broad-based deterioration in sub-indexes drove the decline in business sentiment.