Overview
- Julio Velarde publicly reaffirmed the BCRP's 2% inflation center and defended central bank autonomy as essential to maintain price and financial stability.
- He cited recent low inflation figures to support his stance, saying Peru recorded 1.5% inflation last year and that core inflation excluding volatile items is about 1.8% now.
- Velarde argued that monetary policy cannot be used to sustainably drive growth because short-lived stimulus erodes credibility and can leave lasting costs for households and firms.
- The central bank will continue to limit excessive exchange-rate swings through a flexible rate, reserve holdings and targeted interventions to keep currency moves orderly.
- He warned that experienced leadership matters in extreme crises, noted his roughly 20-year tenure, and said regional regulatory 'fat' has built up and slows structural reforms that could speed growth.