Board of Directors of the Central Reserve Bank of Peru (BCRP) cut the reference rate by 25 basis points and by 2 percentage points from its peak of 7.75%.
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The Board of Directors of the Central Reserve Bank of Peru (BCRP) agreed to reduce the reference interest rate by 25 basis points, and bring it to 5.75% by May of this year. This means 2 percentage points less than the peak of 7.75% that was maintained for a long time to mitigate inflation.
After the significant reduction in inflation rates in the rest of the world between the second quarter of 2022 and the end of 2023, the persistence of interannual rates has been observed in recent months. However, inflation is expected to continue declining gradually throughout the year.
Along these lines, the 12-month inflation rate decreased from 3% in March to 2.4% in April, so it is within the target range, while 12-month inflation without food and energy fell slightly from 3.1% to 3% between March and April; in this way it is placed at the upper limit of the target range. Meanwhile, 12-month inflation expectations remained at 2.6% in April and were within the inflation target range for the fifth consecutive month.
On the other hand, the issuing entity projects that year-on-year inflation will continue to decline and remain around the center of the target range in the coming months. Likewise, the next session of the Board of Directors in which the Monetary Program will be evaluated is scheduled for June 13, 2024.
Journalist from the Peruvian University of Applied Sciences (UPC) with a major in Management and Leadership. She is editor of La República in the economics section for digital and print.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
