The Central Reserve Bank of Peru kept its benchmark interest rate unchanged at 4.25% in March 2026, marking the fifth consecutive meeting with no change, in line with market expectations. The Bank noted that annual inflation accelerated to 3.8% in March from 2.2% in February, moving above the 1%–3% target range, driven by a surge in oil prices and a domestic natural gas crisis.
Even so, twelve-month inflation expectations rose only moderately, to 2.5% in March from 2.1% in February, and remained within the target band. At the same time, economic activity was assessed to be close to its potential level in March, with leading indicators continuing to show solid performance. Most indicators of current conditions and business expectations stayed in optimistic territory during the month.
The Board reaffirmed that it will remain vigilant to new information on inflation and its determinants and stands ready to adjust the monetary policy stance if warranted.
