Published on Friday, June 10, 2022

Peru | BCRP continued tightening the monetary policy position

The Board of the Central Bank decided to increase the monetary policy rate from 5.00% to 5.50% in June. The Bank continues the normalization of monetary policy in a context of lesser external headwinds and pessimistic expectations.

Key points

  • Key points:
  • The policy rate increased by 50 basis points for the tenth time in a row and now stands at 0,61% in real terms.
  • The Bank insisted that the higher inflation observed in May is a result of further significant rises in the international price of food inputs and fuels.
  • The monetary authority maintained its inflation forecast and expects it to return to the target range (2% +/- 1%) between the second and third quarter of next year.
  • Inflation expectations increased from 4.6% to 4.9% in May.
  • We expect the Central Bank to continue hiking, taking the reference rate to 6.50% in the following months.

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