The Central Reserve Bank of Peru kept the benchmark interest rate steady at 2.75 percent at its January 2018 meeting, as widely expected. Policymakers underscored that economic activity indicators picked up in December, but remain below potential. Also, they pointed that global volatility persists. On the price front, it was mentioned that inflation rate is expected to remain within the target range and around 2 percent. The annual inflation rate rose to 2.19 percent in December of 2018 from 2.17 percent in the previous month, below the projected 2.5 percent. Interest Rate in Peru averaged 3.76 percent from 2000 until 2019, reaching an all time high of 8.90 percent in January of 2001 and a record low of 0.90 percent in August of 2003.
Interest Rate in Peru is expected to be 2.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Peru to stand at 3.00 in 12 months time. In the long-term, the Peru Interest Rate is projected to trend around 4.00 percent in 2020, according to our econometric models.