Peru cuts rates for first time in more than two years
Reversal in food prices prompts board into action, with inflation now expected to end the year within target band
The Central Reserve Bank of Peru has lowered its main policy interest rate to 4%, the first cut made by its board since January 2015. In a statement published on May 11, the board said the policy change was “compatible” with the bank’s inflation forecast, which now predicts convergence to its target of 2% (+/– 1%) in 2017.
For the past 14 months, the bank has left rates unchanged – it raised them previously – but a “significant reversal” in price increases for food has prompted action from the
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