Peru Interest Rate

Peru’s Central Reserve Bank left its benchmark interest rate unchanged at 4.25% in October 2025, as expected. The board noted that monthly inflation was 0.01 percent in September, while core inflation, excluding food and energy, was 0.06 percent; annual inflation rose to 1.4 percent, with core inflation steady at 1.8 percent. Inflation expectations for the next 12 months remained at 2.2 percent, within the target range, and are projected to stay near the center by year-end. Most economic indicators stayed positive, with activity near its potential, though global growth faces downside risks from trade restrictions. The BCRP emphasized it will closely monitor inflation trends, expectations, and economic activity, adjusting policy as needed. Operational rates in local currency were set, including overnight deposits at 2.25 percent and direct repos at 4.75 percent for the first ten operations in the past three months.