Economics
Peru Lifts Key Rate to 6% as Inflation Hits 25-Year High
- Policy makers raise the benchmark rate to 6% from 5.5%
- Tightening cycle likely nears its end as inflation seen easing
A shopper browses produce at a market in Lima, Peru.
Photographer: Miguel Yovera/BloombergThis article is for subscribers only.
Peru’s central bank raised its key interest rate by half a percentage point to fight the fastest inflation in 25 years that’s been fueling social tension in the Andean country.
The bank on Thursday lifted the benchmark rate to 6%, the highest since 2009 and in line with expectations of all economists surveyed by Bloomberg. It is the 12th straight hike in a cycle that added 575 basis points to borrowing costs since August.