Peruvian rates hit 5.25% on inflation fears

The Central Bank of Peru's rate-setting board raised rates to 5.25%.

The central bank said the action was "adopted to maintain inflation expectations with the inflation target range", which is between 2% and 4%. Inflation reached 3.93% in 2007, which the central bank largely blamed on imported inflation, which hit 10.46%.

Along with the high rate of inflation recorded for 2007, the board said that a 0.45% rise in the consumer price index for Lima, Peru's capital city, in December had led them