LIMA - The Central Reserve Bank of Peru announced a cut in its reference interest rate to 6.50%, signaling a shift in monetary policy in response to declining inflation. The bank's decision is part of its ongoing commitment to adjust economic policy tools to maintain inflation within the target range, taking into account a variety of economic indicators and potential risks.
In recent months, the inflation rate in Peru has shown signs of easing. The annual inflation rate, which stood at 3.2% in December, has been on a downward trend since June. This decrease has provided the Central Reserve Bank of Peru with the flexibility to lower the reference interest rate from its previous level.
The bank emphasized that future rate decisions will be data-dependent, closely aligning with inflation trends. By doing so, the bank aims to ensure that inflation remains under control while also supporting economic growth. The bank also acknowledged the need to consider various factors that could impact the economy, including potential climatic events and ongoing social conflicts.
The next monetary policy meeting is on the calendar for February 8, 2024. At this meeting, the bank will review the latest economic data and decide whether further adjustments to the reference interest rate are necessary to maintain economic stability and keep inflation within its desired range.
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