BOC SAYS DON'T EXPECT RATES TO RETURN TO PRE-COVID LEVELS

MNI BRIEF: BOC Says Time For Rate Cut Is Nearing

BOC REITERATES TIME FOR RATE CUT IS GETTING NEARER

MNI WATCH: CNB Seen Cutting 50Bps to 5.25%, Signal Slower Pace

MNI China Daily Summary: Tuesday, April 30

MNI BRIEF: China To Keep Tackling Risks In Real Estate, Debts

MNI: FRANCE MAR INDUSTRIAL PRODUCTION -0.3% M/M, +0.7% Y/Y

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

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

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 Review - April 2024: Policy Easing Cycle Resumed

The BCRP unexpectedly cut its reference rate by 25bps 6.00%, resuming its easing cycle after a pause at the prior meeting in March.

LatAm Bank - ReviewHomepageEM Central Bank ReportsEM Central Bank ReviewEmerging Market News

Executive Summary:

  • Peru’s central bank unexpectedly cut its reference rate by 25bps 6.00%, resuming its easing cycle after a pause at the prior meeting in March.
  • The consensus among surveyed analysts had expected the BCRP to pause once more, although most had described the decision as a close call.
  • The board appear comfortable with the dynamics of the inflation trajectory, noting that March’s above-estimate surprise is considered transitory. The statement provided the usual caveat that “future rate adjustments will be conditional on new information about inflation and its determinants.”
  • Analysts believe that the board’s decision could point to an every-other-meeting easing strategy ahead. While a modest surprise, reactions to the latest approval of the pension withdrawal bill may have more of an impact on Peruvian assets in the short-term.

Click to view the full review:

MNI Peru Central Bank Review - April 2024.pdf

146 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:

  • Peru’s central bank unexpectedly cut its reference rate by 25bps 6.00%, resuming its easing cycle after a pause at the prior meeting in March.
  • The consensus among surveyed analysts had expected the BCRP to pause once more, although most had described the decision as a close call.
  • The board appear comfortable with the dynamics of the inflation trajectory, noting that March’s above-estimate surprise is considered transitory. The statement provided the usual caveat that “future rate adjustments will be conditional on new information about inflation and its determinants.”
  • Analysts believe that the board’s decision could point to an every-other-meeting easing strategy ahead. While a modest surprise, reactions to the latest approval of the pension withdrawal bill may have more of an impact on Peruvian assets in the short-term.

Click to view the full review:

MNI Peru Central Bank Review - April 2024.pdf