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Peru’s Central Bank Holds Benchmark Rate at 4.25% for Fifth Straight Meeting

Officials remain ready to adjust policy ahead of the March 12 review.

Overview

  • January price data showed monthly inflation at 0.10% and core at 0.04%, with 12‑month headline at 1.7% and core at 2.0%, as one‑year inflation expectations eased to 2.0%.
  • The Board set operational window rates at 2.25% for overnight deposits and 4.75% for the first ten repo and Monetary Regulation Credit operations in the past three months, with additional rates determined by the operations committee.
  • The central bank reported economic activity near potential and said most current‑condition and expectations indicators remain in the optimistic zone.
  • BCR officials estimate GDP growth of about 3.2% for January after roughly 3.4% in 2025, with non‑primary sectors strengthening and fishing showing a decline.
  • Policymakers highlighted exceptionally favorable terms of trade and noted strong business confidence, emphasizing Peru’s openness to private investment.