Thursday, February 7, 2013

Peru holds rate steady, sees inflation converging to target

    Peru's central bank kept its policy rate steady at 4.25 percent, saying inflation is expected to converge toward the bank's 2.0 percent mid-point target in coming months, reflecting improved supply of food and economic activity that is close to its potential during a time of weak global output.
    The Central Reserve Bank of Peru (BCRP), which has held rates steady since April 2011, also said the country's economy had stabilized around its sustainable, long-term level of activity although sectors that depend on external markets remain weak.
   Peru's inflation rate rose to 2.87 percent in January, up from December's 2.65 percent, still within the central bank's target range of 1.0-3.0 percent.
    Peru's Gross Domestic Product rose by an annual rate of 6.5 percent in the third quarter of 2012, up from 6.3 percent in the second quarter.
    At its previous meeting in January, the central bank also said it expects inflation to converge toward its 2.0 percent target.


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