LatinNews Daily - 10 March 2023

* Peru’s central bank (BCRP) has held the benchmark interest rate at 7.75% for a second consecutive month, highlighting a slight drop in annual inflation which fell from 8.66% in January to 8.65% in February. The BCRP predicted “a downwards trajectory of annual inflation from March, with a return to the target range [1-3%] in the fourth quarter of this year, due to the moderation of international food and energy prices [and] the reversal of supply shocks in the agricultural sector.” However, the BCRP emphasised that the decision not to raise interest rates “does not necessarily imply the end of the cycle of raises,” and that “future adjustments to the benchmark rate will be conditioned on new information about inflation and its determinants”. The BCRP had raised the benchmark interest rate every month for over a year before holding it at its current rate in February.

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