Peru's Central Bank Holds Steady at 4.75% Amid Global Economic Concerns

Peru's Central Bank Maintains Interest Rate at 4.75%

The Central Reserve Bank of Peru (BCRP) has decided to keep its benchmark interest rate unchanged at 4.75%. This decision, made on Thursday, reflects concerns about how global trade tensions might affect Peru's economy and inflation.

While Peru has seen positive trends in local inflation, with the annual rate slowing to 1.5% in February and expected to decrease further in March, the BCRP is cautious. They also noted that inflation expectations for the next 12 months have decreased slightly, remaining within the target range.

The central bank is closely watching global economic risks, especially those related to restrictive trade measures. Although Peru's economy is growing faster than others in the region, the BCRP recognizes that trade policies from countries like the United States could have an impact, particularly on metal and fruit exports.

Looking ahead, the BCRP anticipates the economy to grow by 3% this year. The bank will continue to monitor inflation, underlying trends, expectations, and overall economic activity to guide future monetary policy decisions.