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PERU: New Measures Expected To Boost Agro-Exports, Feb CPI This Week

PERU
  • The President of Peru's Association of Exporters, Julio Pérez Alván, has announced that the government will introduce initiatives to strengthen the economy. These initiatives are expected to include a new agricultural promotion law to boost agro-exports, and the establishment of private Special Economic Zones. Although total agro-exports are projected to reach $13bn this year, growth is expected to slow to around 5%, from 21.4% in 2024. As a result, the new agrarian promotion law is seen as crucial for stimulating the sector and extending its benefits across the country.
  • Meanwhile, the data calendar is light this week, with the next tier one release being February CPI inflation on Mar 1. Headline inflation is expected to fall further towards the bottom of the 1-3% target range, with consensus currently at 1.46% y/y (vs. 1.85% in January), which would be the lowest since September 2018. Deutsche Bank also sees core inflation falling almost to the 2% target, from 2.4% in January, which they say could keep the door open to a 25bp rate cut at the March 13 MPC meeting. However, a March rate cut could be the last one for the year, in their view.
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  • The President of Peru's Association of Exporters, Julio Pérez Alván, has announced that the government will introduce initiatives to strengthen the economy. These initiatives are expected to include a new agricultural promotion law to boost agro-exports, and the establishment of private Special Economic Zones. Although total agro-exports are projected to reach $13bn this year, growth is expected to slow to around 5%, from 21.4% in 2024. As a result, the new agrarian promotion law is seen as crucial for stimulating the sector and extending its benefits across the country.
  • Meanwhile, the data calendar is light this week, with the next tier one release being February CPI inflation on Mar 1. Headline inflation is expected to fall further towards the bottom of the 1-3% target range, with consensus currently at 1.46% y/y (vs. 1.85% in January), which would be the lowest since September 2018. Deutsche Bank also sees core inflation falling almost to the 2% target, from 2.4% in January, which they say could keep the door open to a 25bp rate cut at the March 13 MPC meeting. However, a March rate cut could be the last one for the year, in their view.