LatinNews Daily - 15 May 2026

*Peru’s central bank (BCRP) has held its benchmark interest rate at 4.25%, for the eighth consecutive time, having last lowered it by 25 basis points in September. The move was in line with analysts’ expectations cited by Reuters. In a statement, BCRP notes that monthly inflation in April was 0.52%, bringing the annual rate to 4.0%. The monthly rate is down from 2.38% in March, the highest monthly jump since December 1993, but the annual rate is up from 3.80% in March, and remains outside the BCRP’s target range of 1-3%. The BCRP attributes the rise in inflation to the increase in costs of local transport and fuel amid higher global fuel prices due to the war in the Middle East. However, it says that given recent inflation has been associated with temporary ​supply-side factors, it projects that inflation will drop to around 2% in ​2027 as these supply shocks dissipate. More generally the BCRP said that “global risk remains elevated due to the ‌conflict ⁠in the Middle East, reflected in greater volatility in the financial markets, and high international oil prices”. Nonetheless “prospects for global economic growth for this year remain positive, and the terms of ​trade remain favourable ​for the Peruvian ⁠economy”.

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