The Central Reserve Bank of Peru has lowered its main policy interest rate to 4%, the first cut made by its board since January 2015. In a statement published on May 11, the board said the policy change was “compatible” with the bank’s inflation forecast, which now predicts convergence to its target of 2% (+/– 1%) in 2017.

For the past 14 months, the bank has left rates unchanged – it raised them previously – but a “significant reversal” in price increases for food has prompted action from the