The Central Reserve Bank of Peru kept the benchmark interest rate steady at 2.75 percent at its May 2019 meeting, as widely expected. Policymakers said that the decision is appropriate as inflation expectations remain anchored in an environment in which the economic activity is below its potential, amid recent sluggishness in primary activity. The Committee noted that the annual inflation rate rose to 2.59 percent in April from 2.25 percent in March, the highest inflation rate since September 2017, mainly driven by cost of food and transportation, still it is projected to remain within the target range and be around 2 percent in the projected horizon. Interest Rate in Peru averaged 3.75 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.