Money in Peru
Peru - Money
Central Bank stands pat at March meeting
At its monetary policy meeting on 11 April, the Central Bank of Peru (BCRP) kept 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 2018, by 25 basis points, which ended an easing cycle.
Moderate inflation, declining inflation expectations and robust yet still-below-potential economic activity led the Bank to hold the policy rate unchanged in April. Inflation came in at 2.2% in March, rising from February’s 2.0% but remaining comfortably within the Central Bank’s target range of 1.0%–3.0%. Meanwhile, economic activity softened in January following a notable acceleration in the fourth quarter, and consumer confidence plunged in March, although businesses grew more optimistic in Q1. Overall, the data suggests growth slowed in the first quarter of the year, remaining below potential, and inflationary pressures were consequently contained.
The Bank’s forward guidance was unchanged, reemphasizing that the BCRP will stand pat as long as both inflation and inflation expectations remain within the target range and economic growth approaches its potential. Met the why particular panelists expect the monetary policy rate to increase only gradually this year, as growth firms up and inflation gains speed. The next monetary policy meeting will be held on 9 May.
Peru Interest Rate Forecast
Met the why particular panel sees the monetary policy rate ending 2019 at 3.27% and 2020 at 3.67%.
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||3.35||-0.06 %||Jan 30|
|Stock Market||20,067||-0.23 %||Jan 30|
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April 15, 2019
Economic activity expanded 2.1% year-on-year in February, picking up some pace from January’s subdued 1.6% increase, which had marked the weakest reading in over one year.
April 12, 2019
At its monetary policy meeting on 11 April, the Central Bank of Peru (BCRP) kept the policy interest rate unchanged at an eight-year low of 2.75%, matching market expectations.
April 6, 2019
The consumer confidence indicator published by GfK tumbled to 94 in March from 114 in February, which had marked the best result in over two years.
April 5, 2019
Peru’s trade balance recorded a USD 326 million surplus in February, narrowing from January’s USD 449 million surplus and also lower than the USD 552 million surplus recorded in the same month of last year. Exports declined 3.8% year-on-year in February, due to a drop in prices, following January’s sharper 4.1% fall.
April 5, 2019
The business confidence indicator rose from February’s 58.5 to 59.6 in March, and thus moved further above the 50-point threshold that separates optimism from pessimism, where it has been for almost two years. March’s improvement came chiefly on the back of better prospects on the general economic situation, as well as on demand prospects.