FX.co ★ Peru Holds Policy Rate at 4.25%

Peru’s Central Reserve Bank left its benchmark interest rate unchanged at 4.25% in March 2026, marking the fourth consecutive meeting without a change and aligning with market expectations. The bank noted that headline inflation accelerated to 2.2% in February from 1.7% in January, driven by adverse weather conditions, higher global fuel prices, and a domestic natural gas shortage. Twelve-month inflation expectations inched up to 2.1% from 2.0%, remaining close to the midpoint of the target range. The central bank targets annual consumer price inflation of 1% to 3%, with a preference for outcomes near the center of that band. It assessed economic activity as operating close to potential, with February’s leading indicators continuing to point to solid growth. Even so, the BCRP warned that global risks have intensified due to the conflict in the Middle East, as evidenced by increased financial market volatility and higher oil prices.