Peru Hike Surprises

Peru’s central bank has tightened its monetary policy rate by 50bp, bringing it to 2.50%, more than expected by the market. Bulltick expected a 25bp hike, although it says that “economic growth has come roaring back and inflationary pressures are increasing.” Inflation in July rose 0.36% month over month, taking annual inflation to 1.83%, the shop adds. Barclays, which expected a 25bp increase, but did not rule out a larger 50bp hike, expects the rate to reach 4.00% in December and 5.00% in April 2011.