Friday, October 7, 2011

Central Reserve Bank of Peru Keeps Rate at 4.25%

The Central Reserve Bank of Peru kept its monetary policy reference rate unchanged at 4.25%.  The Bank said: "This decision takes into account the slowdown observed in some components of expenditure and production, as well as the intensification of international financial risks. Should these trends continue, the Central Bank will change its monetary policy stance. "

Peru's central bank also held the interest rate at 4.25% at its September meeting, while the bank last raised the monetary policy reference rate by 25 basis points to 4.25% in May this year.  Peru reported annual inflation of 3.73% in September, up from 3.35% in August and July, and compared to 2.9% in June, 3.07% in May, 3.34% in April, and above the Bank's 1-3% inflation target.  

The Bank's next Monetary Policy meeting will be held on the 10th of November 2011.  The Peruvian Nuevo Sol (PEN) last traded around 2.75 against the US dollar, with the PEN gaining approx. 1% year to date.


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