Peru | Expansive monetary policy remains in place

Summary

In January, the Board of the Central Bank decided to maintain the monetary policy rate at 0,25% again. The Bank will maintain a strongly expansive stance for a prolonged period and emphasized its new instruments oriented to the strengthening of the monetary policy transmission.

Key points

• Key points:
• The monetary authority stated that it expects inflation to print at the centre of the target range at the beginning of the year and end it in the lower half of the target range (between 1 and 2 percent).
• The Bank also remarked on its efforts to provide liquidity and their impact on credit.
• The monetary authority showcased its new repurchase instruments and interest swaps conditioned on the expansion of long term credit as tool that will help strengthen the transmission of the monetary policy rate to the rates charged by financial institutions.

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