Peru: interest rate cut unlikely to spur aggressive easing cycle

We doubt that last night’s interest rate cut in Peru signals the start of an aggressive easing cycle. Inflation looks set to remain above target while a large current account deficit suggests that domestic demand is already too strong. Accordingly, we expect interest rates to remain on hold at 3.75% for the foreseeable future.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.