Peruvian Central Bank raises interest rates

The Central Bank of Peru (BCRP) increased interest rates by 25 basis points. The Central Bank of Peru (BCRP) continued the interest rate hike process that it started in August 2021 at its 17th meeting and increased interest rates by 25 basis points as in its previous three meetings. According to the statement made by BCRP, the interest rate was increased from 7.25 percent to 7.50 percent. Markets also expected the interest rate to be increased by 25 basis points. The Central Bank of Peru lowered the interest rate to 0.25 percent in April 2020. Thus, the bank increased interest rates by a total of 725 basis points in its last 17 meetings. In the last 12 of these 17 meetings, interest rates were increased by 50 basis points, and in five of them by 25 basis points. Inflation in Peru is at 8.45 percent.