Peru Extends Steepest-Ever Interest Rate Rises Amid Turmoil
- Central bank raises its key rate to 7.75%, highest since 2001
- Annual inflation remains far above central bank’s target range
The Central Bank of Peru in Lima.
Photographer: Miguel Yovera/BloombergThis article is for subscribers only.
Peru extended its biggest-ever phase of monetary tightening Thursday in a bid to curb a spike in inflation that is now being aggravated by anti-government protests and road blockades.
The central bank raised its benchmark rate by 0.25 percentage points to 7.75%, the highest level in more than two decades. The decision was in line with expectations, and was the bank’s 18th straight rate increase.