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Scotiabank Point Out Growing Coverage Of El Niño

PERU
  • Whilst admitting that it is not the most immediate market mover, Scotiabank have pointed out that more and more articles are popping up on the dangers posed by El Niño.
  • Peruvian media have of course been following developments regarding the climate phenomenon for a while, also amid the country’s dengue outbreak that has rains and flooding to blame as mosquito breeding grounds.
  • However, international media seems more awake to the issue and how this could impact food supply chains in coming months/quarters.
  • It may be too early to speculate, but this risk (that is pulling away from simply being a ‘tail’ risk) may be worth preparing for; recall that during the 2017–18 El Niño episode, the BCRP cut its policy rate by 150bps from a 4.25% policy rate level at the time.

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