Peru keeps reference rate steady amid strains stoked by U.S. downgrade

By Susanna Moon

Chicago, Aug. 12 - The Central Reserve Bank of Peru's board said it again chose to maintain the monetary policy reference rate at 4¼%.

Inflation in July was affected by transitory factors and recorded a monthly rate of 0.79% and a rate of 3.35% in the last 12 months, according to a news release Friday by the bank.

Core inflation, which registered 0.25%, accumulated an annual growth rate of 3.18%. Inflation excluding food and energy was recorded at 0.2% and at an accumulated annual rate of 2.02%.

The board pointed to signs that there was less growth than in previous months and that global activity showed strains amid the downgrade of the U.S. debt and the persistence of risks in some industrialized countries.

The board also maintained the overnight deposit rate at 3.45% and direct repo and rediscount operations rate at 5.05%.

The bank opted to hold steady on the policy rate at 4¼% in July.

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