Peru
News

Peru expected to hold key rate

Bnamericas Published: Friday, May 09, 2014

The key interest rate in Peru is not likely to move anytime soon, according to Capital Economics.

As widely expected, the central bank board left the benchmark interest rate unchanged at 4% on Thursday for the sixth month in a row.

Despite a slowdown in the Peruvian economy, Capital Economics does not see any room for "aggressive monetary easing" during the coming 18 months, with a large current account deficit and inflation running above the 1-3% target.

The London-based research firm said that it expects only a small policy rate cut of 25 basis points this year, and that the central bank will likely continue using other mechanisms to stimulate the economy, such as reducing banks' local currency reserve requirements.

The central bank recently cut its 2014 GDP growth estimate to 5.5% from 6%, while Capital Economics sees 5% growth this year.

Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects

Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.

Other companies in: Political Risk & Macro

Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.

  • Company: Business Finland Oy  (Business Finland)
  • The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...