Latin America Economics

Latin America Update
11 November, 2011

Peru: modest rate cuts likely in 2012

Policy makers in Peru left interest rates unchanged at 4.25% last night. In the very near-term strong domestic conditions, rising inflation and a planned fiscal stimulus will deter rate cuts, despite a rapidly deteriorating external backdrop. Nonetheless, policy makers have plenty of ammunition in the event that the global economy deteriorates by more than expected and we anticipate modest rate cuts in 2012....

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