September 10, 2007
Peru has surprised the markets with a 25bp hike in the reference interest r
Peru has surprised the markets with a 25bp hike in the reference interest rate to 5.00%. The consensus view was that the central bank would leave the rate unchanged and the tightening was the second in three months, totaling a 50bp increase since July. The central bank is apparently being preemptive in fighting inflation amid surging domestic demand and higher prices for imported raw materials. Analysts expect Peruvian rates to remain stable for the rest of 2007.