FX.co ★ Peru Keeps Rates Steady at 4.5% in July

The Central Bank of Peru opted to maintain its benchmark interest rate at 4.5% during its July meeting, indicating that any future changes would be contingent on new data concerning inflation and its primary influences. This decision was made in the backdrop of recent inflation data revealing a 0.13% monthly increase in June, with core inflation rising by 0.07%. Yearly inflation steadied at 1.7%, while annual core inflation decreased slightly from 1.8% to 1.7%. Inflation forecasts for the upcoming 12 months stayed at 2.3%, fitting within the central bank’s targeted range. Bank officials anticipate that inflation will linger at the lower end of this range in the near term and gradually stabilize around the midpoint. Although current economic indicators showed a slight decline, the majority remained positive, indicating economic activity close to potential levels. The bank also noted a weakening in global growth prospects due to trade restrictions, which has increased uncertainty and volatility in financial markets, and reaffirmed its commitment to adjusting policy as necessary to achieve its inflation objectives.