Economics

Peru Raises Key Rate to Curb Fastest Inflation in 12 Years

  • Central banks across Latin America are withdrawing stimulus
  • Peru assets rallied after divisive Prime Minister replaced
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Peru tightened monetary policy for a third straight month after inflation surged to its highest rate in 12 years and political volatility roiled the currency.

The central bank lifted its benchmark rate half a percentage point, to 1.5%, matching the median forecast of economists surveyed by Bloomberg. It was the third consecutive rate hike by the bank led by Julio Velarde.