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Julio Velarde Honored in Cusco and Signals He May Stay as Peru Central Bank Chief

Velarde defended the BCR's 2% inflation target, attributing the recent rise in prices to oil, gas and El Niño shocks.

Overview

  • Velarde received a Doctor Honoris Causa from Universidad Andina del Cusco and also accepted honorary titles from Universidad Nacional de San Antonio Abad and the Colegio de Economistas in Cusco.
  • Velarde, who received the Doctor Honoris Causa on Thursday, used the events to highlight Peru's long period of low inflation and to defend the central bank's policy framework.
  • He said Peru recorded the longest spell of low inflation in Latin America and that inflation in 2024 and 2025 was lower than in several advanced economies.
  • Velarde attributed the recent uptick in inflation to an oil price shock, a March gas supply interruption and the effects of El Niño, and he framed those factors as external to the BCR's 2% target.
  • He said he would consider staying on as BCR president if formally offered, a comment that may influence market expectations about policy continuity and future interest-rate decisions.