Peru Keeps 3.25% Rate to Bolster Sol Amid Increased Volatility

Peru kept borrowing costs unchanged for a second month in a bid to bolster the local currency amid increased volatility in financial and currency markets.

The board, led by President Julio Velarde, held the key rate at 3.25 percent, as forecast by 13 of 20 economists surveyed by Bloomberg. Seven expected a cut to 3 percent. Policy makers cited growth rates below potential, slowing inflation and currency volatility as reasons for the pause.