Peru’s Central Bank (BCRP) kept interest rates at 4.25% for the third successive month last night as policymakers wait to see if the worst of the global market storm has passed over. In the very near-term, financial market turbulence will continue to dictate the path of monetary policy and will temper further tightening. With inflation still above target we expect one or two more hikes but have nudged our year-end forecast down to 5.0% and believe that rates should remain flat throughout 2012.