The board of directors of the Central Reserve Bank of Peru (BCRP) reduced the reference interest rate to 7.00%, a ratio not seen since October of last year.
After a cycle of consecutive increases to mitigate inflation, the BCRP once again lowered the reference rate for loans in the national market by 25 basis points.
Through a statement, they indicated that This does not imply future successive declines, and they will be attentive to the development of inflationary factors.. At a global level “there is a trend towards moderation”, while locally, the risks linked to El Niño persist.
They explain the reduction of the reference interest rate the fall in inflation in Metropolitan Lima during October (-0.32%) and from 5.0% to 4.3% in interannual terms. Added to the fact that twelve-month inflation excluding food and energy fell to 3.3%. “Both indicators have been decreasing since the beginning of 2023, but continue to be above the upper limit of the inflation target range,” they detailed.
The BCRP estimates that the inflation target range—that is, between 1% and 3%—would reach the beginning of 2024 due to the moderation of the effect of international prices of various items, reversal of supply shocks in the agricultural sector. and lower inflationary expectations.
Source: Larepublica
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