Banking projects, which this year, will reduce the rate to 4.25%, supported in a strong slowdown in inflation and a favorable external environment.
Inflation in historical lows
The BCP economic research area confirmed its expectation that the Central Reserve Bank of Peru (BCRP) reduced its standard to 4.25% by the end of 2025.
The projection is based on the fall of the annual consumer price inflation (IPC) in the capital Lima, which decreased to 1.1%in August, the lowest level in seven years and very close to the lower target range (1%-3%).
Core IPC and stability signs
The report also emphasizes that the main IPC, which excludes food and energy, was 1.7% a year, its lowest record in four and a half years.
Wholesale inflation has accumulated for two consecutive years in the negative field, while this year’s oil price is 10%. This is added to the sun more than 6%, and the inflation expectations up to 12 months is close to a minimum of four years.
A favorable external context
The BCP believes that the international environment enhances the scenario of an additional decline in the benchmark. As part of the slowdown in global prices and more stable BCRP financial conditions, it will have a profitability to maintain expansive monetary policy without harming macroeconomic stability.
