Peru Rates in the Balance

Peru’s Central Bank holds its monthly monetary policy meeting Thursday and analysts expect no change, pending no hike in inflation. “We believe the decision will likely be data dependent,” says Goldman Sachs. It predicts that inflation will stay around 0.20%, thus keeping rates unchanged at 4.75%. “However, if inflation exceeds expectations (0.35% MoM or higher), we believe the Central Bank is likely to raise the reference interest again, by 25bp, to 5.0%,” it adds. BBVA on the other hand sees no change to rates.