Peru | Central Bank reaffirms strongly expansive posture for a prolonged period

Summary

The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in July. The Bank renewed its commitment to maintain a strongly expansive stance for a prolonged period and placed emphasis on its efforts to provide liquidity to the market.

Key points

• Key points:
• The monetary authority expects inflation to dip below the target range this and next year.
• Our baseline scenario contemplates the monetary policy rate remaining at this level at least until the end of 2021, given the expected impact of the coronavirus crisis on economic activity.
• We do not rule out additional non-conventional measures to further expand the monetary stimulus or foster the transmission of the current low level of the policy rate to the financial system’s rates.

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