Peru Holds Interest Rate at 4.25%

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.

Peru’s Central Reserve Bank left its benchmark rate unchanged at 4.25% in December 2025, holding steady for the third straight meeting, inline with expectations. The bank highlighted that November headline inflation held at 1.4% and core inflation at 1.8%, while 12-month inflation expectations stayed at 2.2%, comfortably within the target range. Policymakers also cited solid readings in current-conditions and expectations indicators, alongside a global backdrop of moderate growth amid easing trade tensions. 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 kept its benchmark rate at 4.25% in November 2025, matching expectations. Policymakers highlighted that annual inflation held at 1.4% in October, while core inflation stayed at 1.8%, aligned with the midpoint target band. Twelve month inflation expectations remained at 2.2%, comfortably inside the target range, and core inflation is projected to hover near 2% through the outlook period. Most economic indicators stayed firm, with activity close to potential, though global growth continues to face downside risks from trade restrictions. The BCRP said it will keep tracking inflation dynamics, expectations, and economic activity, adjusting policy when needed.