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Scotiabank on BCRP Decision Due Later Today

PERU
  • Peru’s central bank is expected to hike by another 50bps to 4% on Thursday. That would take cumulative hikes up to 375bps since the tightening campaign began last August.
  • Inflation returned to above 6% (6.2% y/y) in February and is rising at the quickest pace since 2009. Core CPI climbed to 3.25% which is its fastest since 2016.
  • Both are well above the 2% +/-1% inflation target range while global inflation risk has climbed since the last meeting on February 10.

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