LatinNews Daily - 15 September 2023

* Peru’s central bank (BCRP) has lowered its benchmark interest rate by 25 basis points to 7.5%. The BCRP had previously held the rate at 7.75% for seven consecutive months, although it stressed that the adjustment “does not necessarily imply a cycle of successive reductions in the interest rate”. The decision to lower the interest rate reflects falling inflation, which has been dropping since the start of 2023 with the annual rate standing at 5.58% in August, down from 5.88% in July. This remains above the BCRP’s target range of 1-3%, although the bank predicted that inflation will continue to fall in the coming months and will enter the target range in early 2024.