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PERU: Itaú Expecting Three More BCRP Cuts This Year

PERU
  • Itaú expect the central bank to continue easing its monetary policy stance during the rest of the year amid well-behaved inflation and below trend activity. 
  • While the narrowing of the BCRP-Fed rate differential might suggest limited scope for rate cuts ahead, recent comments by the central bank president suggest that the policy rate could fall below the FFR, increasing the odds of further rate cuts. 
  • Itaú’s end of year policy rate forecast is at 5.00%, which imply three more rate cuts of 25-bp.

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