Peru's rates steady as inflation remains subdued

Peru's central bank yesterday held the overnight lending rate unchanged for the thirteenth consecutive month at its five-year high of 4.5%. Infaltion remains low and stable, despite rapid economic growth.

The country's headline inflation in the twelve months to May was 0.94%, fractionally below the 1% to 3% tolerance range around the central bank's annual target of 2%.

Peru's inflation rate is the lowest in the region, with core inflation rising by 1.5% in the year to May.

However, some analy