Peru’s central bank kept borrowing costs unchanged for a 27th straight month after reducing reserve requirements to counter slower growth.
The five-member board, led by bank President Julio Velarde, maintained the overnight rate at 4.25 percent, matching the forecasts of all 13 economists surveyed by Bloomberg. Peru ties Malaysia for the longest interest-rate pause in developing countries.
“The decision reflects the fact that economic growth is close to potential and inflation expectations are anchored within the target range,” according to the board’s statement posted on the bank’s website. “The board, if necessary, will take additional steps to relax reserve requirements” after adjustments since April freed up 1 billion soles ($358 million) and $350 million in U.S. dollars to bolster lending, it said.
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