Barclays Cuts Peru Growth Forecast

Barclays has chopped the forecast for this year’s Peru GDP growth to 0.4% from 1.9%. The shop says most recent data shows GDP expanded just 0.19% year-on-year in February, well below expectations of 1.3%. It also revised the inflation forecast to 2.6% from 2.7%. The currency is also expected to lose value, reaching PES3.35 per dollar by the end of the year. April 16 it closed at PES3.08. Barclays also expects the central bank to become more aggressive in cutting rates, and predicts a 150bp reduction in May, followed by 100bp in June, from 5% this week.