Peru’s central bank kept borrowing costs unchanged after cutting reserve requirements for a sixth time in seven months to fuel a rebound in growth.
The seven-member board, led by bank President Julio Velarde, yesterday maintained the overnight rate at 4 percent for a third straight month, matching the estimates of 14 of 15 economists surveyed by Bloomberg. One analyst forecast a quarter-point reduction to 3.75 percent.
While the economy has been growing below potential, activity indicators and the bank’s surveys of expectations “signal a recovery in economic activity in the first quarter,” according to the central bank’s communique.
Read full article…