The Central Reserve Bank of Peru left the benchmark interest unchanged at 2.50 percent at its September 2019 meeting, surprising markets who expected a 25bps cut. Policymakers said that the decision remains appropriate and will monitor new inflation data to take actions if necessary. The Committee noted that the annual inflation rate remains within the target range and it is expected to be around 2 percent on the projected horizon, with a downward bias due to a possibility of a slower-than-expected growth in domestic demand. Policymakers underscored that primary activity has gained steam since July after a complicated first half of the year, whereas non-primary activity has also picked up, but at a softer rate than expected. Interest Rate in Peru averaged 3.72 percent from 2000 until 2019, reaching an all time high of 8.90 percent in January of 2001 and a record low of 0.90 percent in August of 2003.
Interest Rate in Peru is expected to be 2.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Peru to stand at 2.25 in 12 months time. In the long-term, the Peru Interest Rate is projected to trend around 2.50 percent in 2020, according to our econometric models.