Peru’s Central Reserve Bank left its benchmark interest rate unchanged at 4.25% in June 2026, as widely anticipated, extending its policy pause for a ninth straight meeting. Annual inflation eased to 3.9% in May from 4.0% in April, while core inflation held steady at 4.4%, remaining above the bank’s 1–3% target range. At the same time, 12‑month inflation expectations inched up to 2.9% from 2.8%, but stayed within the target band.
The central bank expects both headline and core inflation to gradually return to the target range and converge toward 2% in 2027 as temporary supply‑side shocks dissipate. Economic data for May continued to signal solid activity, with most business confidence and expectations indicators remaining in optimistic territory. Even so, policymakers highlighted heightened global risks, particularly those linked to tensions in the Middle East.
The Board reiterated that it is closely monitoring inflation, inflation expectations, economic activity, and supply shocks, and stands ready to adjust policy as needed to ensure inflation returns to target.
