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Finance Minister Concludes US Trip, BCRP Decision Tomorrow

PERU
  • Peruvian Finance Minister Alex Contreras concludes New York trip where he has been meeting with foreign investors.
  • 10/11 surveyed analysts are expecting the central bank to continue with its tightening cycle, hiking the reference rate by 25bps to 8.00% at tomorrow’s meeting. Just one analyst within the Bloomberg survey expects the rate to be left unchanged.
  • The shock the country has endured since December represents a negative supply shock and given its potential to contaminate inflation expectations, the central bank will likely maintain its hawkish stance and refrain from ending the hiking cycle.

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