Profile image
By CentralBankNews.info (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Peru holds rate, inflation seen in range by mid-2017

Thursday, January 12, 2017 16:58
% of readers think this story is Fact. Add your two cents.

Headline: Bitcoin & Blockchain Searches Exceed Trump! Blockchain Stocks Are Next!

    Peru’s central bank maintained its monetary policy rate at 4.25 percent for the 11th month in a row, saying the rate was consistent with its forecast that inflation would converge to its target range by the middle of this year.
    The Central Reserve Bank of Peru (BCRP), which paused in its tightening campaign in March last year after four rate hikes, also said economic growth slowed in the final quarter of last year amid lower public spending but activity in coming quarters should be close to the economy’s potential and expectations among businesses remain optimistic.
   Peru’s inflation rate eased to 3.23 percent in December from 3.35 percent in November, with the central bank last month in its inflation report raising its estimate for 2016 inflation to 3.3 percent from 3.0 percent due to higher food prices from drought.
    For 2017 BCP forecast 2.3 percent, up from its previous forecast of 2.0 percent, marking the first year since 2013 that inflation would be within the central bank’s target range of 1-3 percent.
    In 2013 inflation averaged 2.9 percent but then rose to 3.2 percent in 2014 and 4.4 percent in 2015, partly due to depreciation of the peso from mid-2014 to February 2016.
   Since then the peso has been more stable and was trading at 3.36 to the U.S. dollar today, slightly up from 3.4 at the start of 2016 but steady from 3.35 at the start of this year.
    Peru’s economy expanded around its potential rate of 4 percent in 2016 but a drop in public investment in the fourth quarter hit the construction sector. But the new president, who took office in July last year, has promised to boost infrastructure projects.
    The central bank has estimated 4.0 percent growth for 2016 and in December lowered its 2017 forecast to 4.3 percent from 4.5 percent due to lower public spending. For 2018 the central bank expects growth of 4.2 percent.
    In its statement, the central bank said 2017 growth expectations were 4.0 percent.
    In the third quarter of last year Peru’s Gross Domestic Product grew by an annual rate of 4.4 percent, up from 3.7 percent in the second quarter and the central bank has estimated fourth quarter growth of 3.2 percent, rising to 4.2 percent in the first quarter of this year.

    www.CentralBankNews.info

 



Source: http://www.centralbanknews.info/2017/01/peru-holds-rate-inflation-seen-in-range.html

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

 

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.