Peru Central Bank Holds Interest Rates Steady Amid Rising Inflation

Forex - The Central Reserve Bank of Peru (BCRP) did not change the benchmark interest rate following the acceleration of both headline and core inflation.

According to the statement from the BCRP, the benchmark interest rate remained at 5.00%. The majority of analysts also expected the rate to be kept steady.

The statement noted, "The Board pays particular attention to new information regarding inflation and its determinants, including core inflation, inflation expectations, and economic activity, to assess additional changes in the monetary policy stance as necessary."

The bank indicated that inflation is expected to remain within the target range in the foreseeable future, but may slightly rebound in the coming months due to base effects.

In November, inflation was realized at 2.27%, above the midpoint of the BCRP's target range of 1-3%. Core inflation also recovered to 2.56%.