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PERU: HSBC Expecting a 25BP BCRP Cut to 5.5%

PERU
  • Highlighting the differing views for this week's BCRP decision, HSBC see a 25bp cut this week, getting the policy rate to 5.50%, and expect the central bank to continue its intermittent easing cycle in the coming months. 
  • HSBC think monetary authorities will then pause to assess movements on international rates and progress on core inflation decline. They have pencilled in further 25bp cuts for October and December, leaving the policy rate at 5.0% by 2024YE. 
  • They expect 75bp more rate cuts for 2025 but think this will be even more conditional on the global rates environment.

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