Peru | Central Bank keeps rate unchanged, but less dovish looking forward

Summary

The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in June. The Bank will maintain a strongly expansive stance but removed mention of it being for a prolonged period.

Key points

• Key points:
• The monetary authority stated that it expects inflation to remain in the target range throughout 2021 and 2022 and print in the lower half (between 1 and 2 percent) in 2022.
• The monetary authority pointed out that the higher inflation observed in May is a result of supply factors.
• The Bank also remarked on its efforts to dampen volatility in local financial markets in a context of electoral uncertainty.

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