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Peru holds key interest rate at 4.25% for 13th straight month

Peru left its key rate unchanged despite forecasts for a quarter-point hike, and inflation has stayed above the central bank target range for seven straight months.

Reported · Written up by our desk · Central Banks

Peru’s central bank kept borrowing costs unchanged for a 13th consecutive month, holding its key rate at 4.25% on Wednesday, according to LiveMint Markets.

The decision surprised nine of 13 economists surveyed by Bloomberg, who expected a quarter-point increase, while four forecast no change.

The bank said it remains focused on new inflation data, including core inflation, inflation expectations, economic activity, and how long supply shocks last, and it emphasized taking necessary actions to bring inflation back to target.

LiveMint Markets noted that inflation has been above the central bank’s 3% top of the target range for seven straight months, with September consumer prices rising 4.55%, the fastest pace since 2023.

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