We doubt that last night’s interest rate cut in Peru signals the start of an aggressive easing cycle. Inflation looks set to remain above target while a large current account deficit suggests that domestic demand is already too strong. Accordingly, we expect interest rates to remain on hold at 3.75% for the foreseeable future.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services