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MNI Peru Central Bank Review: March 2024: Surprise Hold

MNI Peru Central Bank Review – March 2024

MNI Peru Central Bank Review – March 2024

Executive Summary

  • Peru’s central bank unexpectedly left its reference rate unchanged at 6.25%, pausing its easing cycle after a sequence of six consecutive 25bp moves.
  • The majority of analysts had expected a further 25bp cut to 6.0%. However, the Board did announce a reduction in the reserve requirement ratio from 6.0% to 5.50% starting in April, “with the purpose of complementing the monetary easing initiated in September 2023.”
  • Looking ahead, BCRP will maintain its data dependent approach, with the statement continuing to note that future moves “will be conditional on new information about inflation and its determinants.”

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