Peru Eases More Than Expected

While consensus pointed to a 50bp cut, Peru’s central bank made a larger-than-expected 100bp cut last week, bringing the monetary policy rate to 3.0%, and accumulating 350bp in easing this year. The central bank cites falling inflation and economic deceleration as the reasons behind the move. It adds that inflation has fallen from 6.7% in December to 4.2% in May. “If this trend continues the central bank will continue easing the rate,” the bank says.