Peru Central Bank Pauses

Peru’s central bank kept its rate steady last night, despite consensus expectations of a 25bp raise to 4.50%. Celfin had cited higher food costs pushing inflation outside the central bank’s target range of 1%-3% as motivation for the move. Citi had predicted a pause in rates. “This measure comes as a result of waning increases in consumer prices,” according to the bank. “The board of directors addressed the fact that monthly consumer price inflation stood in negative territory in May, and it stated that future policy rate shifts should depend on new information concerning inflation and its determinants.”