Peru Leaves Rate Unchanged

Peru’s central bank left its rate unchanged at 3.00%, in line with expectations. The bank says it decided to leave rates on hold as annual inflation in October was negative for the second consecutive month, primarily because of a drop in food prices. Celfin expected the rate to stay on hold, also citing falling consumer prices. Morgan Stanley expects the bank to pause for the remainder of the year. It had previously expected to rate to be tightened to 4.00% by the end of 2010.