Overview

• The BCRP held its reference rate at 4.25% on October 10 following a 25-basis-point reduction in September, with the next board meeting set for November 13.
• The decision cited low September inflation readings, with headline inflation at 0.01% and core at 0.06%.
• Twelve‑month headline inflation edged up to 1.4% from 1.1% in August, core held at 1.8%, and inflation expectations remained at 2.2% in September.
• Officials project annual inflation will move toward the midpoint of the target range by year‑end and expect core inflation to hover around 2% over the projection horizon.
• The bank reported domestic activity near potential and mostly optimistic indicators, while warning that restrictive global trade measures pose a medium‑term downside risk.