August 7, 2009
Peru's central bank has cut its key interest rate by 75bp to 1.25%, a histo
Peru's central bank has cut its key interest rate by 75bp to 1.25%, a historic low. Consensus had pointed to a 50bp reduction. The bank, which has cut 525bp so far this year, says that the decision is driven by a more benign inflation environment. The inflation rate has dropped to 2.68% in July from 6.65% in December. The central bank says that it is likely it may not have to make any more cuts, but that this also depends on inflation trends going forward.