The Central Reserve Bank of Peru cut the key interest rate to 3% from 3.25% on January 11 on lower inflation and public spending, while the country grapples with political instability.
The year-on-year inflation rate fell to 1.36% in December from 1.54% in November, closer to the floor of the target inflation range of 1–3%. Twelve-month inflation expectations declined to 2.3% from 2.48%.
“This result is mainly explained by the reversal of supply shocks, to which a below-potential economic acti
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