Economics
Peru Raises Rate as Sol Slump Pushes CPI to Three-Year High
- Second increase in four months comes amid slow GDP recovery
- Peruvian sol trading near its weakest level in almost a decade
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Peru increased borrowing costs for the second time in four months as the fastest inflation since 2012 obliges policy makers to reduce stimulus, even as economic growth remains sluggish.
Policy makers, led by central bank President Julio Velarde, raised the benchmark lending rate by a quarter point to 3.75 percent, as forecast by all 18 economists surveyed by Bloomberg.