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MNI Preview: BCRP May Soften Tone Following CPI Decline

PERU
  • Peru’s central bank is expected to keep the reference rate unchanged at 7.75%, as expected by all surveyed analysts on Bloomberg.
  • Given the notable improvement for CPI in June, some analysts believe that conditions may warrant the central bank board to soften the tone of the statement language and potentially transition to a more neutral forward guidance, cautiously opening the door for monetary easing ahead.
  • Furthermore, one analyst has even provided a low 20% probability to a scenario where the BCRP could cut rates this week, citing weak activity dynamics.
  • The full MNI preview with analyst views is here:
  • Peru Central Bank Preview - July 2023.pdf


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