Peru Cuts Rate by 25bp

Peru’s central bank has cut its monetary policy rate by 25bp to 6.25%, citing lower inflationary pressures. The bank says it expects inflation to continue falling. Merrill Lynch had correctly predicted the bank would make the quarter point reduction. “Increased evidence of slowing activity and global easing set the path for lower policy rates,” says the shop, adding that it expects a stronger cut at the March 5 meeting. Merrill expects 250bp of easing through 2009.