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MNI BCRP Preview – Dec 2024: Pause In Easing Cycle Expected

The central bank is expected to stay on hold at 5.0% this week.

Executive Summary

  • With the BCRP signalling last month that a pause in the easing cycle is likely, the central bank is expected to stay on hold this week, at 5.0%.
  • The recent up-tick in CPI inflation also gives a reason to pause, while Governor Velarde said that the increase in public spending is limiting the pace at which the central bank can cut interest rates.
  • The central bank is expected to keep the door open to further rate cuts ahead, however, and some analysts still see scope for a cut this week, amid recent outperformance of the Peruvian sol.

Click to view the full preview: MNI BCRP Preview - Dec 2024.pdf

 

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Executive Summary

  • With the BCRP signalling last month that a pause in the easing cycle is likely, the central bank is expected to stay on hold this week, at 5.0%.
  • The recent up-tick in CPI inflation also gives a reason to pause, while Governor Velarde said that the increase in public spending is limiting the pace at which the central bank can cut interest rates.
  • The central bank is expected to keep the door open to further rate cuts ahead, however, and some analysts still see scope for a cut this week, amid recent outperformance of the Peruvian sol.

Click to view the full preview: MNI BCRP Preview - Dec 2024.pdf

 

Keep reading...Show less