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Peru| Central bank raises its policy rate again and gets tougher on inflation expectations

Published on Friday, February 12, 2016

Peru| Central bank raises its policy rate again and gets tougher on inflation expectations

The Central Bank raised its policy rate by 25bps, to 4,25%. It is more clearly trying to stop increasing inflation expectations from spilling over into the price-formation process. We reckon an enhanced commitment in that sense. Improved economic activity prints reinforce the credibility of maintaining it.

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