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  • All five analysts surveyed by Bloomberg expect the BCRP to keep the policy interest rate unchanged at 0.25%.
  • Policy makers are expected to reiterate plans for keeping rates low for a prolonged period and a willingness to provide additional liquidity, if necessary.
  • Rising political uncertainty and subsequent volatile conditions for local assets may prompt extra vigilance over the coming months.
  • Even greater stress in the political sphere, causing a dramatic depreciation of the local currency, may warrant earlier than expected action. A scenario seen by a minority of analysts is that the BCRP may be led to tighten its policy stance before the end of this year to curb further weakening of the Sol.
  • Data released since the May meeting signal economic growth has lost momentum and activity remains below the pre-pandemic level. With core inflation also remaining subdued, there will be little scope for any policy adjustment at this meeting.

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