Peru Holds Rate at 4.25% as Price Rises Unexpectedly Stall

  • Prices were virtually unchanged in April as sol strengthened
  • Inflation rate is retreating from a four-year high in January
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Peru’s central bank kept borrowing costs unchanged after raising them four times in the past year, as inflation slowed from a four-year high.

The central bank board, led by bank President Julio Velarde, maintained the key rate at 4.25 percent Thursday for a third consecutive month, matching the forecast of 15 of 17 economists surveyed by Bloomberg. Two analysts expected the board to raise to 4.5 percent.