Peru Unexpectedly Raises Key Rate as Sol Fuels Price Rises
- Currency weakness, inflation pushed central bank to raise
- Intervention, trading curbs haven't stopped sol decline
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Peru unexpectedly increased borrowing costs for the first time in four years as a slide in the sol fans the fastest inflation since 2012.
The central bank board, led by bank President Julio Velarde, raised its key lending rate to 3.5 percent from 3.25 percent, surprising 14 of 17 economists surveyed by Bloomberg who expected no change. Three analysts forecast the quarter-point increase.