Tag: commodity prices

Peru’s central bank has chosen to keep the benchmark interest rate at 4.25%, holding for the 24th consecutive month. The decision is in line with market expectations and comments from central bank governor Julio Velarde last week. Ahead of the decision, Velarde told LatinFinance that Peru’s central bank did not yet see signs for a rate cut despite a dramatic drop in commodity prices that may force authorities to revise down growth forecasts. “Of course we see a slowdown but the signs are still not there [for lowering rates]. This growth slowdown was expected, but I don’t believe it will be more dramatic,” the official said. Authorities were projecting an average of 6.5% growth before the drop in commodity prices, he added. Peru’s output expanded 5.0% in February from a year earlier after a 6.2% jump in January.