Central Banks
Peru Raises Its Key Interest Rate to Two-Decade High of 7%
- Policymakers seek to tame inflation, limit capital flight risk
- Economy is cooling from last year’s growth of more than 13%
The bank added that it would do what is needed to get inflation back to its target range.
Photographer: Miguel Yovera/BloombergThis article is for subscribers only.
Peru raised interest rates for a 15th straight month in a bid to get inflation back under control and limit the risk of capital flight as the US Federal Reserve withdraws stimulus.
The central bank raised its benchmark rate by a quarter of a percentage point to a two-decade high of 7%, in line with expectations. That’s up from 0.25% in August 2021.