Peru Interest Rate

The central bank of Peru left its benchmark interest rate unchanged at 4.5% in its July meeting, stating that future adjustments will depend on new data regarding inflation and its key drivers. The decision followed recent inflation figures showing a 0.13% monthly rise in June, with core inflation up 0.07%. Annual inflation held at 1.7%, and core annual inflation edged down from 1.8% to 1.7%. Inflation expectations for the next 12 months remained at 2.3%, within the central bank’s target range. Officials expect inflation to remain at the lower end of that range in the short term and stabilize near the midpoint over time. Despite a slight deterioration in current economic indicators, most remained in optimistic territory, suggesting activity near potential levels. The bank noted that global growth outlooks have weakened due to trade restrictions, fueling uncertainty and financial market volatility, and reiterated its commitment to adjusting policy as needed to meet its inflation goals.