BCRP maintains reference interest rate at 5.75% for June

The board of directors of the Central Reserve Bank of Peru (BCRP) agreed to maintain the reference interest rate at 5.75% for this month of June. Future adjustments will be conditional on new information on inflation and its determinants.

After the significant reduction in inflation rates in the rest of the world between the second quarter of 2022 and the end of 2023, a slight persistence in year-on-year rates is observed in some economies. However, inflation is expected to continue declining gradually throughout the year.

In Peru, in May, the monthly inflation rate was -0.09% and inflation without food and energy was 0.16%. This result in monthly inflation is mainly explained by the reversal of the effect of supply shocks for some foods. Thus, the twelve-month inflation rate decreased from 2.4% in April to 2% in May, in the center of the target range. Meanwhile, twelve-month inflation without food and energy increased from 3% to 3.1% percent between April and May, above the upper limit of the target range.

Although the outlook for global economic activity points towards moderate growth in a context of lower inflationary pressures, Volatility still persists in financial markets associated with uncertainty about the rate of reduction of monetary policy interest rates in advanced economies.and in addition the risks derived from international conflicts remain.

In this sense, the board of directors is especially attentive to new information regarding inflation and its determinants, including the evolution of underlying inflation, inflation expectations and economic activity, to consider, if necessary, additional modifications in the position of monetary policy.

Likewise, the BCRP reaffirms its commitment to adopt the necessary actions to maintain inflation in the target range and announces that the next session where the monetary program will be evaluated is scheduled for July 11, 2024.