Peru Holds Rates Steady for 8th Straight Meeting

2026-05-14 23:08 By Joshua Ferrer 1 min. read

Peru’s Central Reserve Bank kept its benchmark interest rate unchanged at 4.25% in May 2026, extending the pause for an eight consecutive meeting and matching market expectations.

The annual inflation accelerated to 4% in April from 3.8% in March, while core inflation rose to 4.4% from 3.7%, remaining above the 1–3% target range.

The increase was mainly driven by higher transport fares and fuel costs amid elevated global oil prices linked to Middle East tensions.

Still, twelve-month inflation expectations rose only slightly to 2.8% from 2.5%, remaining within the target range.

The central bank expects inflationary pressures to gradually ease, with inflation projected to return closer to 2% in 2027.

Meanwhile, leading indicators continued to show solid economic activity, though business expectations weakened somewhat in April.

The Board said it remains attentive to inflation, expectations, and economic activity, and will adjust policy if needed to ensure inflation returns to target.



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Peru Holds Rates Steady for 8th Straight Meeting
Peru’s Central Reserve Bank kept its benchmark interest rate unchanged at 4.25% in May 2026, extending the pause for an eight consecutive meeting and matching market expectations. The annual inflation accelerated to 4% in April from 3.8% in March, while core inflation rose to 4.4% from 3.7%, remaining above the 1–3% target range. The increase was mainly driven by higher transport fares and fuel costs amid elevated global oil prices linked to Middle East tensions. Still, twelve-month inflation expectations rose only slightly to 2.8% from 2.5%, remaining within the target range. The central bank expects inflationary pressures to gradually ease, with inflation projected to return closer to 2% in 2027. Meanwhile, leading indicators continued to show solid economic activity, though business expectations weakened somewhat in April. The Board said it remains attentive to inflation, expectations, and economic activity, and will adjust policy if needed to ensure inflation returns to target.
2026-05-14
Peru Keeps Interest Rate Unchanged for 5th Month
Peru’s Central Reserve Bank left its benchmark rate steady at 4.25% in March 2026, maintaining the level for a fifth consecutive meeting, in line with market expectations. The bank highlighted that annual inflation accelerated to 3.8% in March from 2.2% in February, exceeding the central bank’s target range of 1%–3%, amid a surge in oil prices and a domestic natural gas crisis. Despite this, twelve-month inflation expectations increased to 2.5% in March from 2.1% in February, remaining within the inflation target range. However, economic activity remained near potential in March, with leading indicators continuing to show strong performance. Most indicators of current conditions and expectations remained in optimistic territory during the month. The Board reiterated that it remains attentive to new information on inflation and its determinants and, if necessary, will adjust the monetary policy stance.
2026-04-09
Peru Holds Policy Rate at 4.25%
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.
2026-03-13