Reported 7 months ago
Peru unexpectedly decided to keep its borrowing costs unchanged citing worries about persistent core inflation in the services industry. Despite slowing headline inflation hitting the target range for the first time in over three years and the Finance Ministry's call for faster rate cuts to stimulate economic growth following a 0.6% economic contraction in 2023, the central bank maintained its key rate at 5.75%. With annual inflation down to 2% in May, Peru now boasts the lowest inflation among major Latin American economies, and the central bank foresees it staying around this level.
Source: YAHOO