Peru lowers interest rate to 6.50% in fifth straight cut

The central bank's fifth-consecutive rate cut comes after Peru's 2023 inflation rate closed at 3.24%, the lowest level of rising consumer prices in three years and close to the central bank's target range of 1% to 3%. In a statement, the central bank said it sees inflation reaching the target range in the coming months, but that Thursday's cut did not necessarily imply future reductions to the key lending rate.

Peru's central bank on Thursday cut its benchmark interest rate by 25 basis points to 6.50%, in line with expectations as inflation eases in the Andean nation. The central bank's fifth-consecutive rate cut comes after Peru's 2023 inflation rate closed at 3.24%, the lowest level of rising consumer prices in three years and close to the central bank's target range of 1% to 3%.

In a statement, the central bank said it sees inflation reaching the target range in the coming months, but that Thursday's cut did not necessarily imply future reductions to the key lending rate. The world's second-largest copper producer fell into a recession last year, pummeled by the adverse effects of the weather phenomenon known as El Nino, lower private investment mainly in mining and the impact of anti-government protests.