Peru Rate Hike Expected

Market consensus points to Peru’s central bank tightening its rate by 25bp to 3.50% today. Bulltick’s forecast is in line with market consensus, but says that there is risk to the upside as inflation rises. Morgan Stanley, which sees the rate unchanged at 3.25% believes the central bank is not in a hurry to tighten the rate as it wants to avoid feeding currency strength. It sees the rate rising to 4.00% by the end of the year.