Peru Maintains Interest Rate at 5%

Peru’s Central Reserve Bank kept its benchmark rate steady at 4.25% in March 2026, maintaining the level for a fourth consecutive meeting, in line with market expectations. The bank highlighted that headline inflation rose to 2.2% in February from 1.7% in January, driven by adverse weather, rising global fuel prices, and a domestic natural gas crisis. Twelve-month inflation expectations edged up slightly to 2.1% from 2%, staying near the center of the target range. The central bank aims for annual consumer price growth of 1% to 3%, with a preference for rates close to the midpoint. Economic activity remains near potential, and February’s leading indicators continued to show solid performance. However, the BCRP cautioned that global risks have risen due to the Middle East conflict, reflected in greater financial market volatility and higher oil prices.

Peru’s Central Reserve Bank left its benchmark rate unchanged at 4.25% in February 2026, holding steady for the third straight meeting, in line with expectations. The bank highlighted that January headline inflation rose to 1.7% (from 1.5% in December) with monthly inflation at 0.10%, while core inflation without food and energy increased to 2.0% (from 1.8%); twelve-month inflation expectations fell to 2.0% in January, comfortably within the target range. Policymakers also cited solid readings in current-conditions and expectations indicators, alongside a global backdrop of growth higher than previously expected and exceptionally favourable terms of trade. The BCRP reiterated that it will continue to monitor inflation dynamics, expectations, and economic activity, and stands ready to adjust policy as needed.

Peru’s Central Reserve Bank left its benchmark rate unchanged at 4.25% in January 2026, holding steady for the third straight meeting, in line with expectations. The bank highlighted that December headline inflation rose to 1.5% (from 1.4% in November) with monthly inflation at 0.24%, while core inflation without food and energy remained at 1.8%; twelve-month inflation expectations fell to 2.1% in December, comfortably within the target range. Policymakers also cited solid readings in current-conditions and expectations indicators, alongside a global backdrop of moderate growth. The BCRP reiterated that it will continue to monitor inflation dynamics, expectations, and economic activity, and stands ready to adjust policy as needed.