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Peru: Lessons from Humala’s presidency

Peru’s president-in-waiting Pedro Castillo seems more moderate than many initially feared, which bears a striking resemblance to former leader Ollanta Humala. The latter’s tenure suggests that, provided there are market-friendly appointments to the new cabinet, local financial markets could soon rebound from their post-election slump. However, compared to Mr. Humala’s time in office, there is now a higher risk of looser fiscal policies, which may keep markets on the backfoot over the medium term.

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