LatinNews Daily - 10 November 2023

* Peru’s central bank (BCRP) has lowered its benchmark interest rate by 25 basis points to 7%. This was the BCRP’s third successive lowering of interest rates, following previous reductions of 25 basis points in October and September. In a statement explaining its decision, the BCRP noted that there had been monthly deflation of -0.32% in October, bringing annual inflation to 4.3%. The bank lowered its 12-month inflation forecast to 3.3%, down slightly on its 3.4% forecast in September, and noted that this is approaching the BCRP’s target range of 1-3%. Whilst the BCRP predicted that inflation would continue to fall in the coming months due to a moderation of global prices and the reversal of supply problems in the agricultural sector, it did note a risk posed by the El Niño climate phenomenon.