Peru Interest Rate

Peru’s central bank reduced its benchmark interest rate by 25 basis points to 5% during its November 2024 meeting, marking the lowest level since May 2022. This move follows a series of rate cuts, totaling 275 basis points, that began in September 2023. In its statement, the central bank noted that real interest rates are approaching neutral levels and emphasized that this latest reduction does not signal the start of a continuous easing cycle. The bank also highlighted that while headline inflation picked up slightly in October, core inflation showed signs of slowing. A temporary rise in annual inflation is expected, largely due to base effects from the previous year. Externally, the bank cited easing global inflationary pressures and ongoing risks from international conflicts and economic slowdowns, particularly in China, as factors influencing the decision.