Peru | New monetary policy pause and the opportunity window for a rate cut keeps vanishing

In spite of the ongoing output weakness, the CB decided not to cut its policy rate in March, as expected. FX depreciation pressures once again explain this decision. Going forward, a more challenging inflation outlook and the proximity of the FED’s monetary policy tightening cycle continues to reduce the opportunity window for a rate cut, which we consider to be necessary.

Authors

Geographies

Topics