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Disappointing Activity Data May Limit Further Tightening

PERU
  • As a reminder, Peru Economic Activity rose 1.4% y/y in July, versus a surveyed median estimate of 2.7%. Additionally, the unemployment rate for August rose to 7.3% from 6.8% a month ago.
    • The BCRP slowed their hiking pace to 25bps last week and the disappointing data could signal that the tightening cycle end is very close. The BCRP next meet on October 06.
  • Overnight, Peru’s congress approved that a regulatory committee starts an investigation on alleged corruption acts carried out by a “family criminal organization” controlled by the presidency.
  • Also on Thursday, Peru’s congress approved a censure of Transport Minister Geiner Alvarado due to moral incapacity and lack of suitability for the position, according to images broadcast on Congreso TV.

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