Peruvian Central Bank Lifts Reserve Requirements to Cool Credit

Peru’s central bank increased reserve requirements for the third time in three months to cool credit demand.

The average ratio will rise by 0.75 percentage points for bank deposits in soles and dollars effective tomorrow, the central bank said in an e-mailed statement yesterday. The average deposit ratio last month was 16.9 percent for soles and 38.9 percent for dollars, it said.

“The measure seeks to act preventively to slow the pace of credit expansion in a context of high liquidity abroad and exceptionally low interest rates in international markets,” the central bank said in a statement.

The monetary authority increased the amount of reserves banks must hold at the central bank by 0.5 percentage points in May, September and October while maintaining its benchmark interest rate steady at 4.25 percent.

To contact the reporter on this story: John Quigley in Lima at jquigley8@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.