Money in Peru
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
|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||5.26||-0.60 %||Sep 20|
|Exchange Rate||3.30||-0.06 %||Sep 20|
|Stock Market||19,488||-0.23 %||Sep 20|
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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.
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.
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.
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.
September 3, 2018
Consumer prices in Metropolitan Lima increased 0.13% month-on-month in August, below July’s 0.38% rise.