Peru Seen In Tightening Mode

Peru’s central bank is expected to continue tightening rates today. Barclays expects a 25bp hike to 2.00% as annual inflation, at 1.64% in June, is on the low end of a 1.00%-3.00% target range. By the end of the year, Barclays forecasts the rate will increase to 3.00%. Morgan Stanley, which also expects a 25bp hike, sees Peru ending the year at 3.25%. In June, the central bank tightened by 25bp to 1.75%.