Peru raises rates for 18th consecutive month

The Peruvian central bank raised its policy rate by 25 basis points on January 12, to 7.75%. This is the eighteenth consecutive increase since policy-makers adopted a more restrictive policy in August 2021. In total, the Central Reserve Bank of Peru has raised its reference rate 750bp in this cycle.

In a statement, the central bank’s board of directors reported that headline inflation has effectively stalled, rising one basis point between November and December to 8.46%. Core inflation fell