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MNI BCRP Preview – Feb 2025: Cautious Pause Seen, Risk Of Cut

The BCRP is expected to keep its policy rate unchanged at 4.75% on Thursday.

Executive Summary

  • The BCRP will be encouraged by the latest set of inflation data in Peru, which showed annual headline CPI fall further below target, keeping the door open to another 25bp rate cut this week.
  • However, the explicit mention to the reference rate “approaching the level estimated as neutral”, a more hawkish Fed and prominent external risks relating to global trade may prompt a cautious hold at this juncture.

Click to view the full preview: MNI BCRP Preview - February 2025.pdf

 

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Executive Summary

  • The BCRP will be encouraged by the latest set of inflation data in Peru, which showed annual headline CPI fall further below target, keeping the door open to another 25bp rate cut this week.
  • However, the explicit mention to the reference rate “approaching the level estimated as neutral”, a more hawkish Fed and prominent external risks relating to global trade may prompt a cautious hold at this juncture.

Click to view the full preview: MNI BCRP Preview - February 2025.pdf

 

Keep reading...Show less