Peru Raises Rate to Tame CPI at Four-Year High as Chile Pauses
- Peru's sol fell most since `98 last year, fueling price rises
- Chile rate kept at 3.5% after December's quarter-point raise
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Peru increased borrowing costs for the third time in five months after the sol’s slump pushed inflation to a four-year high, while Chile kept its key rate on hold.
Peru’s central bank board, led by central bank President Julio Velarde, raised the benchmark lending rate by a quarter point to 4 percent Thursday, as forecast by nine of 15 economists surveyed by Bloomberg. Six analysts expected no change.