Peru's central bank unexpectedly cut its key interest rate to 6% from 6.25% due to a slowing inflation rate.

Peru's central bank unexpectedly cut its key interest rate to 6% from 6.25%, marking a 20-month low despite 12 out of 13 analysts expecting rates to stay the same. The bank cited a slowing inflation rate that's approaching the top of its target band, with annual inflation decreasing from nearly 9% in mid-2022 to 3.05% in February. The central bank stated that it expects inflation to continue its downward trend and gradually converge to the center of the target range in upcoming months. The decision comes amid a gradual economic recovery from recession and heightened political tensions following allegations of President Dina Boluarte's use of Rolex watches in possible illegal enrichment.

April 11, 2024
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