© Reuters. FILE PHOTO: A employee walks pasts the emblem of the Central Reserve Financial institution of Peru (BCRP) inside its headquarters constructing in Lima, Peru June 16, 2017. REUTERS/Mariana Bazo
LIMA (Reuters) – Peru’s central financial institution raised the nation’s benchmark rate of interest by 50 foundation factors to five.5% on Thursday, the eleventh consecutive hike, as authorities within the copper-producing Andean nation battle stubbornly excessive inflation.
Costs rose extra slowly in Might than within the two prior months, however annual inflation nonetheless reached 8.09%, its highest degree in 24 years.
In its present financial coverage tightening cycle, Peru’s central financial institution has raised the important thing rate of interest 525 foundation factors since mid-2021. Thursday’s choice follows price hikes this week in Brazil, Chile and Mexico, as authorities reply to inflation that’s not falling as shortly as anticipated.
In an announcement, the financial institution repeated steerage from final month that it expects annual inflation to start to fall in July.
“Most main indicators and expectations in regards to the economic system stay pessimistic, however they’ve recovered in Might,” the financial institution stated.