Central Banks
Peru Unexpectedly Cuts Interest Rate as Inflation Nears Target Band
- Central bank cut benchmark interest rate to 6% from 6.25%
- Congress later Thursday passed pension withdrawal legislation
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Peru surprised economists by cutting interest rates while congress passed a bill allowing workers to withdraw $7 billion from pension funds as lawmakers and central bankers try to jumpstart a moribund economy.
The central bank lowered its key rate to 6% on Thursday, a 20-month low, as forecast by just one of 13 analysts in a Bloomberg survey. The remaining 12 expected rates to be held at 6.25%.