The bank said it expects the highest monetary authority “to cut its reference rate by 100 basis points in the short term.” The cycle of cuts could start in October, although a first setback as soon as September is not ruled out.
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He BCP Economic Studies Area estimated that the reference rate of the Central Reserve Bank of Peru (BCRP) would remain at 7.75% during its meeting scheduled for this Thursday, August 10.
However, the bank said it expects the highest monetary authority “to cut its reference rate by 100 basis points in the short term.”
The Macroeconomic and Markets report estimated that the cycle of cuts could start in October, although it did not rule out the possibility of a first setback as soon as September.
This Thursday, the BCRP will hold its August monetary policy meeting, where we do not expect changes in the reference rate located
currently at 7.75%.
However, inflation and its expectations continue to slow down. In July, inflation slowed to 5.9% year-on-year, the lowest in 19 months.
Likewise, economic activity has shown a disappointing performance in the first half of 2023; GDP would have fallen by around 0.5% year-on-year, the worst record since the first half of 2001 -excluding the COVID-19 pandemic- and even weaker than the first half of 2009.
Source: Larepublica
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