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Peru Central Bank Review - Jan 2022

PERU
  • The Board of Directors of the Central Reserve Bank of Peru hiked the reference rate by 50bps to 3.00%.
  • Inflation is projected to return to the target range in the fourth quarter of this year, due to the reversal of the effect of transitory factors.
  • While the 50bp hike was broadly expected, the main adjustment came within the forward guidance in the statement. Now, with the information available, the board expects to continue with the normalization of monetary policy in the coming months.
  • The statement indicates that most expectations of economic indicators remained in pessimistic territory in December.
  • The link to the full statement is here: https://www.bcrp.gob.pe/docs/Transparencia/Notas-Informativas/2022/nota-informativa-2022-01-06-1.pdf
  • Analysts are in agreement that Thursday’s statement conveys a more hawkish tone from the BCRP board.
  • The next BCRP meeting/decision is scheduled for February 10, 2022.

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