Peru | Central Bank keeps rate unchanged, but keeps moderating dovish tone

Summary

The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in July. The Bank will maintain an expansive stance but will pay special attention to inflation expectations.

Key points

• Key points:
• The monetary authority stated that it expects inflation to return to the target range (2% +/- 1%) in the next twelve months and remain inside the range in 2022.
• The monetary authority pointed out that the higher inflation observed in June is a result of transitory supply factors.
• The Bank also moderated its dovish tone removing the adjective “strongly” from the expansive monetary policy stance and the mention of the possibility of further expansion of the monetary stimulus looking forward.

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