MNI BRIEF: ISM Expects Sluggish Growth, Sticky Services Prices

MNI BRIEF: German Infl In Line With EA, Growth Lags - GCEE

MNI BRIEF: Focus Support For Cutting-Edge Tech - Ministry

MNI BRIEF: EU Won't Necessarily Follow US on Tariffs-Gentiloni

MNI China Daily Summary: Wednesday, May 15

MNI: PBOC Conducts CNY125 Bln 1Y MLF Weds; Rates Unchanged

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -2.51M TO 457.0M MAY 10 WK

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI Peru Central Bank Preview – March 2024: Gradual Easing Cycle To Continue

Most analysts expect the BCRP to continue with its gradual easing cycle, delivering another 25bp cut which would bring the reference rate down to 6.00%.

LatAm Bank - PreviewCentral Bank of Peru - PreviewEM Central Bank ReportsEM Central Bank PreviewEmerging Market News

Executive Summary

  • Most analysts expect the BCRP to continue with its gradual easing cycle, delivering another 25bp cut which would bring the reference rate down to 6.00%.
  • However, one analyst expects the central bank to stay on hold at 6.25%, pausing the cycle after six consecutive 25bp moves.
  • The general view is that weak GDP growth, the decline in inflation expectations and recent appreciation of PEN against the US dollar still support the case for further gradual easing.
  • However, there is some caution emerging among analysts over declining interest rate differentials, given the shift in Fed rate cut expectations. The recent increase in CPI inflation also gives BCRP little room to step up the pace of easing.

Click to view full preview:

MNI Peru Central Bank Preview - March 2024.pdf

135 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Executive Summary

  • Most analysts expect the BCRP to continue with its gradual easing cycle, delivering another 25bp cut which would bring the reference rate down to 6.00%.
  • However, one analyst expects the central bank to stay on hold at 6.25%, pausing the cycle after six consecutive 25bp moves.
  • The general view is that weak GDP growth, the decline in inflation expectations and recent appreciation of PEN against the US dollar still support the case for further gradual easing.
  • However, there is some caution emerging among analysts over declining interest rate differentials, given the shift in Fed rate cut expectations. The recent increase in CPI inflation also gives BCRP little room to step up the pace of easing.

Click to view full preview:

MNI Peru Central Bank Preview - March 2024.pdf