Central Banks
Peru Extends Its Steepest Rate Hikes as Inflation Tops Forecasts
- Central bank raises its key rate to 21-year high of 7.5%
- Annual inflation unexpectedly jumped to 8.45% in November
Supporters of Peruvian President Pedro Castillo protest outside the Lima Prefecture following his impeachment in Lima, on Dec. 7.
Photographer: Ernesto Benavides/AFP/Getty ImagesThis article is for subscribers only.
Peru extended its steepest-ever series of interest rate increases after inflation topped all forecasts in November, and a political turmoil shakes the country.
The central bank raised its key rate by a quarter of a percentage point to a 21-year high of 7.5% on Wednesday, in line with expectations. That’s up from just 0.25% in June last year, and the 17th consecutive increase.