Peru Interest Rate

The central bank of Peru held its benchmark interest rate steady at 4.5% in its June meeting, signaling a data-dependent approach for any future adjustments. The decision was based on recent inflation data, which showed a slight monthly decline of 0.06% in May due to lower food prices, while core inflation rose just 0.05%. Annual headline inflation remained at 1.7%, and core inflation eased slightly to 1.8%, both near the center of the central bank’s target range. Inflation expectations over the next 12 months held steady at 2.3%, remaining within the target band. While economic activity indicators weakened slightly in May, most remained in optimistic territory, with output hovering around its potential level. The central bank also noted rising global trade tensions and financial market volatility as risks to the global economic outlook, which could impact inflation convergence.