The Central Reserve Bank of Peru kept the benchmark interest rate steady at 2.75 percent at its July 2019 meeting, as widely expected. Policymakers said that the decision is appropriate as the inflation rate is expected to remain within the target range and converge towards 2 percent over the forecast horizon, with a downside bias due to the possibility of a slowdown in domestic demand and added that will pay close attention to new data. The Committee noted a weak performance in primary activity and that the risks concerning global economic activity remained. The annual inflation rate fell to 2.29 percent in June from 2.73 percent in May, mainly due to lower cost of food and non-alcoholic beverages and transport. Interest Rate in Peru averaged 3.74 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 2.75 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 3.25 in 12 months time. In the long-term, the Peru Interest Rate is projected to trend around 4.00 percent in 2020, according to our econometric models.