Wednesday,October 24,2018

Central Bank of Peru remain stable interest rates as inflation returns to the target range

Central Bank of Peru remain stable interest rates as inflation returns to the target range

Central Bank of Peru remain stable interest rates as inflation returns to the target range

The Central Bank of Peru would leave interest rates stable reference in August after the annualized inflation was within the target range and at a lower inflationary expectations showed on Tuesday a Reuters poll.

The 11 analysts polled agreed that the bank will hold at 4.25% benchmark rate at its monetary policy meeting on Thursday.

Annualized inflation in July slowed to 2.96% mainly due to a drop in food prices, the rate entering the Central Bank target range of between 1 and 3%.

“The moderation of inflation and its return to the target range after more than a year have taken pressure off the central bank for increasing it,” said a report from Phase Consultants.The central bank will announce its monetary policy decision on Thursday at 18:00 local time (2300 GMT)

The head of monetary economy Scotiabank, Mario Guerrero, meanwhile estimated that “henceforth the annual path of inflation would be around about 3%.”

The monetary authority also inclined to keep the key rate stable after inflation expectations for 2016 declined to 3.1% in July, according to an official survey.

For next year, analysts also lowered their inflation forecasts to 2.8% from 2.9% forecast in June, according to the survey.

The central bank will announce its monetary policy decision on Thursday at 18:00 local time (2300 GMT)

The sources who said the bank remain stable borrowing costs are: StanChart, JP Morgan, Itau Bank, Credit Suisse, BNP Paribas, 4CAST, Banco de Credito, Inteligo SAB, Scotiabank, BBVA Banco Continental, Phase Consultants.