Lima, December 11 (EFECOM). – The Central Bank of Peru (BCRP) has maintained the reference interest rate at 4.25% for the fourth consecutive month, after emphasizing that monthly inflation was 0.11% last November and that 12-month inflation expectations remain at 2.2%, as reported this Thursday.
At the end of its monthly board meeting, the issuing bank said the headline inflation rate, excluding food and energy, for example, remained at 1.4% and 1.8% for 12 months, respectively.
In addition, the BCRP specified that year-on-year inflation is expected to gradually approach the midpoint of the target range in the coming months and that inflation excluding food and energy will remain at around 2% over the forecast period.
He stressed that leading indicators of economic activity performed well last November and that almost all indicators of the current situation and expectations remained in optimistic territory and even most indicators of expectations improved compared to October, in a context where “economic activity is close to its potential level”.
Likewise, the central bank noted that the outlook for global economic activity points to moderate growth amid easing trade tensions.
At today’s meeting, the Board also agreed on an annual interest rate of 2.25% for overnight (very short-term) deposits in local currency transactions with the financial system under the window modality.
Likewise, for direct reporting securities and foreign exchange transactions and currency regulation loans, an interest rate of 4.75% per annum has been set for the first 10 transactions in the last three months, as well as the interest rate determined by the Committee on Currency and Foreign Exchange Transactions for additional transactions to these 10 transactions in the last three months.
The next board meeting to review the currency program will take place on January 8, according to the Peruvian central bank. EFECOM
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