INSUBCONTINENT EXCLUSIVE:
The Central Reserve Bank of Peru (BCRP) has reduced the national reference interest rate to 7 percent.This marks a drop of 25 basis points
considered the recent drop in 12-month inflation
This rate fell from 5 percent in September to 4.3 percent in October.Inflation, excluding food and energy, decreased from 3.6 to 3.3 percent
over the same period.Officials noted that both indicators have been declining since early 2023
This trend is partly due to the lessening effects of temporary supply restrictions on certain foods.As a result, inflation expectations for
the next 12 months went down slightly between September and October.Peru Cuts Key Interest Rate to 7%
(Photo Internet reproduction)The bank forecasts a continuing decrease in year-over-year inflation
They expect it to reach the target range early next year.Contributing factors include easing international price effects, reversing supply
shocks in agriculture, and lowering inflation expectations.However, the Central Bank warned about potential risks from climate factors
They are monitoring changes in inflation expectations and economic activity.This vigilance helps them consider additional adjustments in
These commodities are major export products.The BCRP plays a crucial role in maintaining economic stability
They influence lending, spending, and investment patterns.BackgroundHistorically, Peru has faced challenges with high inflation rates
It can cause significant shifts in food production and prices.Maintaining a stable economic environment is key for Peru
