Peru to Keep Rate Unchanged

Peru’s central bank is expected to keep its monetary policy rate unchanged at 1.25% today. It has already cut 525bp so far this year, Morgan Stanley says, adding that annual inflation has slipped below the 2.00% target to 1.90% in August. Bulltick Capital says it expects a pause in the September meeting after a 75bp cut in August to see how the economy reacts to the rate cuts, the improving global environment and implementation of the fiscal stimulus. It adds there is a possibility of one more 25bp cut to bring the rate to 1.00% by year-end.