Credit Suisse Revises Peru Forecast

Credit Suisse is reducing its year-end forecast for Peru’s monetary policy rate to 2.5% from 4.5% after the central bank decided to make a 100bp cut to its monetary policy rate April 8. “The steady decline in inflation and the improvement in market inflation expectations give the central bank room to continue to lower interest rates sharply and, thus, to attempt to counter the rapid decline in the economy’s growth rate,” the shop says. Credit Suisse sees inflation at 2.5% by the end of the year, within the central bank’s target range of 1%-3%.