Peru Likely to Cut 50bp

Peru’s central bank is expected to lop 50bp off its monetary policy rate as inflation continues to fall. “Considering that inflation and inflation expectations are declining, and taking into account the rapid economic deceleration under way, we expect the central bank to cut the policy rate by 50bp on April 8 and continue front-loading monetary easing in later months,” says Barclays. The shop says the rate will reach 3.5% by September from a current 6.0%. Peru’s Banco de Credito says that inflation has dropped to 4.8%, its lowest level since February 2008, which suggests the central bank will go for a 50bp easing. Bulltick, meanwhile, maintains its call for a 200bp reduction by the end of the year.