Peru Interest Rate2022 Data | 2023 Forecast | 2000-2021 Historical | Calendar

Peru’s central bank decided to raise the policy rate for a sixth straight month by 50bps to 3% on January 6, 2022, in line with market expectations as the country seeks to tame persistent inflation. Peru’s annual inflation accelerated to a 13-year high of 6.43% in December 2021, driven by food and energy prices. “With the information available, we consider it appropriate to continue with the normalization of monetary policy over the coming months,” the bank said in its statement. A robust economic rebound from the pandemic, which outpaced regional peers also aided the central bank’s decision. Policymakers said they are closely monitoring inflation expectations and the evolution of economic activity to decide the appropriate monetary stance, as the bank pushed back its guidance on when it expects inflation to fall back into its target of between 1% and 3% to the last quarter of 2022.

Peru's central bank decided to raise the policy rate by 50bps to 2.5 percent on December 11th, the fifth consecutive increase and in line with market expectations amid higher inflation expectations. Yet, policymakers reinforced that monetary policy continues to be expansionary with a historically low rate and that this decision does not imply necessarily a cycle of successive increases. The policymakers said that the annual inflation ticked down to 5.7 percent in November from 5.8 percent in the previous month, but remained over a decade high and above the upper limit of the central bank target. Still, was evaluated that the prices were mainly influenced by higher international prices, so excluding the effects of fuel and foods, the annual inflation is reduced to 2.9 percent, within the target regime, 2%±1%. Meantime, the central bank forecasts that inflation will ease to below 3 percent during the second half of 2022, while market expectations point to inflation of around 3.5 percent.

Peru's central bank decided to raise its reference interest rate by 50 basis points to 2 percent on November 11th, in line with market expectations and following another 50 basis point increase in the previous month. The Central Reserve Bank of Peru noted that monetary policy continues to be expansionary with a historically low benchmark interest rate and that this decision does not necessarily imply a cycle of successive increases in the reference interest rate, but takes into account the country's elevated inflation levels. The annual inflation rate in Peru accelerated for a sixth straight month to 5.8 percent in October, from 5.2 in the previous month. It is the highest reading since January of 2009, as the country’s political unrest and pandemic recovery efforts elevated consumer prices.