Peru Enters Recession, Bolstering Expectations of Key Rate Cut

  • Peru’s economy shrank 0.56% in June from a year earlier
  • Nation’s economy has now contracted for two straight quarters

Peruvian nuevos soles notes.

Photographer: Karel Navarro/Bloomberg 

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Peru’s economy contracted in June, pushing the economy into a recession and bolstering expectations of an interest rate cut in the near future.

The economy shrank 0.56% compared to a year ago, national statistics agency INEI said on Tuesday. The median forecast of nine analysts surveyed by Bloomberg was for a drop of 0.7%.