Rate cut still on the cards in Peru this year

The Peruvian Central Bank (BCRP) left interest rates on hold last night, but with growth now settling at slower rates we think that policy will be eased this year. Concerns over the strength of domestic demand, and a widening current account deficit, mean that policymakers will tread carefully. We expect rates to be cut by at least 25bp during the course of 2014.

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