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Peru | BCRP increases the reference rate to 3,00% and signals further hikes

Published on Friday, January 7, 2022

Peru | BCRP increases the reference rate to 3,00% and signals further hikes

The Board of the Central Bank decided to increase the monetary policy rate from 2,50% to 3,00% in January. The Bank changed the forward guidance component, signaling further hikes.

Key points

  • Key points:
  • The policy rate increased by 50 basis points for the fifth time in a row.
  • The Bank argued that the higher inflation observed in December is a result of transitory supply factors such as the increase in the international price of food inputs and fuels, coupled with a higher exchange rate.
  • The monetary authority now expects inflation to return to the target range (2% +/- 1%) in the fourth quarter of the year (previously, in the second semester).
  • We expect the Central Bank to continue hiking, putting the reference rate at its neutral level in the second quarter.

Associated documents for downloading

  • Report (PDF) Nota-de-politica-monetaria_20220106.pdf Spanish January 7, 2022

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