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Economics

Peru to Hike Rate as Inflation Hits 25-Year High: Decision Guide

  • All economists in survey expect boost of 50 basis points to 6%
  • Central bank sees inflation relief as soon as this month

Peru’s central bank is expected to raise its key interest rate by half a percentage point on Thursday as the fastest inflation in 25 years fuels social tension in the Andean country.

Policy makers will lift the benchmark rate to 6%, the highest since 2009, according to all economists surveyed by Bloomberg. It will be the 12th straight hike in a cycle that’s already added 525 basis points to borrowing costs since August.