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Peru’s Central Bank Holds Rate at 4.25% as Q3 Growth Stays Firm, 2026 Seen Slower

Anchored inflation gives the bank space to keep policy steady alongside FX smoothing.

Overview

  • The BCRP left its reference rate unchanged at 4.25% in its November monetary program, following three 25-basis-point cuts earlier in 2025.
  • October inflation fell 0.10% month over month, pushing 12‑month inflation to 1.4% with core at 1.8% and one‑year expectations at 2.2%, all within the 1%–3% target range.
  • The bank estimates Peru’s economy expanded about 3.3% in the third quarter, with official INEI results still pending.
  • To limit exchange‑rate volatility, the BCRP has been buying dollars, including roughly US$77 million this week, a tool aimed at smoothing market moves rather than changing direction.
  • The 2026 growth forecast stands near 2.9%, reflecting typical election‑year moderation even as domestic indicators such as formal employment, wage mass, private investment and construction improve.