Peru sees economic growth moderating, maintains 4¼% reference rate

By Toni Weeks

San Diego, Oct. 12 - The Central Reserve Bank of Peru's board has again decided to keep the monetary policy reference rate at 4¼%, according to a bank news release on Wednesday.

Inflation in September was affected by transitory factors and recorded a monthly rate of 0.33% and an annual rate of 3.73%.

Core inflation, which registered 0.31%, accumulated an annual growth rate of 3.37%. Inflation excluding food and energy was recorded at 0.25%, with an accumulated annual rate of 2.38%.

The board pointed out that some components, such as electricity sales and cements consumption, still maintain a strong pace of growth, but indicators of global activity register lower growth rates. Uncertainty in international financial markets and the weak evolution of the U.S. economy have potential negative effects on global economic growth, the bank said.

The board also maintained the overnight deposit rate at 3.45%, direct repo and rediscount operations rate at 5.05% and the swap rate at a commission equal to a minimum annual effective cost of 5.05%.

The bank opted to hold steady on the policy rate at 4¼% in September as well.

The board will approve the monetary program for November on Nov. 10.

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