Peru | Central Bank maintains monetary stance unchanged in October

Summary

The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in October. The Bank renewed its commitment to maintain a strongly expansive stance for a prolonged period and slightly modified its inflation outlook.

Key points

• Key points:
• The monetary authority now expects inflation to remain close to the lower end of the target range this and next year.
• Our baseline scenario contemplates the monetary policy rate remaining at this level the following months, given weak private spending.
• We consider that the Central Bank’s forward guidance could be strengthened by tying the (eventual) decision to hike the interest rate to an activity or price indicator if additional monetary stimulus is required.

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