Peru’s central bank held its benchmark interest rate steady at 4.75% as of Thursday, maintaining a trend from earlier reductions since September 2023. The inflation rate remains at 1.97%, within the target range, and an anticipated decline in core inflation supports this stability. The bank’s decisions reflect careful monitoring of both domestic economic signals and global uncertainties.
On Thursday, Peru’s central bank decided to maintain its benchmark interest rate at 4.75%, aligning with analysts’ predictions. This rate has been gradually reduced from a peak of 7.75% since September 2023, reflecting the central bank’s strategy to adjust to economic conditions. Currently, Peru has one of the lowest benchmark interest rates in Latin America, representing a significant shift in monetary policy.
In 2024, Peru’s inflation rate concluded at 1.97%, comfortably within the central bank’s target range of approximately 2%, allowing for a variation of one percentage point. A slight decline in consumer prices was noted in January, contributing to stable monetary patterns. The central bank anticipates that inflation will remain near the lower threshold of its target in the near future, with core inflation projected to decrease further.
The recent decision follows a 25 basis point reduction earlier in January, signaling the bank’s indication of achieving a “neutral territory” for its interest rate strategy. The bank emphasized the importance of monitoring future inflation developments to guide potential policy adjustments. Furthermore, the central bank acknowledged existing global uncertainties, particularly concerning trade policies and international conflicts that may impact economic conditions.
Peru’s central bank’s retention of the benchmark interest rate at 4.75% and its recent adjustments underscore a careful approach to monetary policy in response to inflation and economic stability. Anticipated inflation trends favor a continued focus on maintaining the rate within targeted limits, despite global economic uncertainties that may influence future decisions.
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