The board of directors of the issuing body agreed not to reduce the reference rate, which remains two percentage points below its historical ceiling of 7.75%.
The board of directors of the Central Reserve Bank of Peru (BCRP) agreed to maintain the reference interest rate at 5.75% for July, which sets the guidelines for short-term credit operations between banking entities, for the second consecutive month.
The reference rate thus remains two percentage points below its historical ceiling of 7.75%, which was used to mitigate inflationary pressure in the Peruvian market.
According to the issuing body, the decision was made in light of the increase to 2.3% of the year-on-year inflation in June – still within the target range, set between 1% and 3%. They expect the CPI to remain in the middle of the target range for the rest of the year, also boosted by the improvement in the macroeconomic expectations indicators.
The BCRP stresses that uncertainty remains about the pace of rate cuts in advanced economies. A clear example is the United States. The Federal Reserve (Fed) is keeping the rate between 5.25% and 5.50% and expects inflation to fall further before cutting it.
Source: Larepublica
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