Investorideas.com

Get great ideas from our AI, cannabis, cleantech, crypto, esports and mining podcasts - be a guest or sponsor : 800 665 0411


Share on StockTwits

Peru: The BCRP remained on hold at 2.25%. The likehood of new rate cuts has decreased recently

 

January 10, 2020 (Investorideas.com Newswire) The Central Bank of Peru (BCRP) held its reference rate unchanged at 2.25% in the first meeting of the year, in line with the market consensus.

In the official statement, the BCRP highlighted once again the downside risks for inflation. Specifically, even though that the Board noted that inflation is expected to stand around 2% in the foreseeable future, there is a moderate downside bias due to domestic demand potentially growing below current expectations. It is important to highlight that inflation expectations stood at 2.2% in Dec-19. In addition, the statement noted that primary sectors and public investment from the general government had a negative performance during 2019, which was partially offset by the dynamics observed in non primary sectors. Moreover, the Board noted that business expectations remained stable in December, while economic activity indicators are signaling a gradual closing of the negative output gap. Also, the statement noted that the impact of recent geopolitical events on international prices remains uncertain.

As in previous months, in the statement it was that "The BCRP Board pays close attention to new information on inflation and its determinants in assessing future changes in the monetary policy stance".

The likelihood of an additional rate cut from the Central Bank has decreased recently, as the real monetary policy rate already stands close to zero and the expectations of higher fiscal stimulus have increased (the government issued 5 urgency decrees which would bolster public investment projects during 2020). However, the Central Bank could lower its policy rate to 2.00% only if the following conditions are met: i) inflation expectations descend towards 2% (Dec-19: 2.2%), and ii) public investment does not pick up and economic growth disappoints. It is important to note that BCRP Certificate Deposits due in 6, 12 and 18 months are being issued at 2.00%, 2.03% and 2.16%, respectively.

For charts, tables and the full report, Download File

Regards,

Luis Ortega
+ (511) 313-2000 ext. 33107
luisortegal@bcp.com.pe

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


Follow Us on StockTwits