August 12, 2022 11:17 GMT
- On Thursday, the BCRP decided to raise the reference interest rate by 50 bps to 6.50%. This represents the highest rate since January 2009.
- The statement cited the significant increase in international food and fuel prices over the past year which has led to a sharp increase in global inflation in magnitudes not seen in many years.
- Inflation is now expected to return to the target range in the second half of 2023, whereas previously the board had indicated the return to the target range would be “between the second and third quarter of next year”.
- In an identical paragraph on guidance, “the Board is particularly attentive to new information on inflation and its determinants, including the evolution of inflation expectations and economic activity, with an aim to consider changes in the monetary stance so that inflation returns to the target range over the forecast horizon.”
- Link to statement here: https://www.bcrp.gob.pe/eng-docs/Monetary-Policy/I...
- The BCRP Board’s next monetary policy session will take place on September 8, 2022.