Peruvian rates on hold as currency concerns persist
Last night, the Central Reserve Bank of Peru (BCRP) held interest rates at 3.0% for the third consecutive
month. Even though the outlook for inflation is deteriorating, currency concerns are likely to temper
aggressive interest rate hikes. For now, we are sticking with our forecast for rates to reach 4.0% by end-
2011, but there is a risk that the peak will be lower....