The Central Reserve Bank of Peru (BCRP) cut the basic interest rate by 25 basis points, to 6.25%. In the statement, however, the monetary authority emphasizes that the decision does not imply a “cycle of successive interest rate reductions”. The note also informs that the decision this Thursday, 8th, was motivated by a reduction in inflation in January, which allowed the price rise to enter the upper limit of the institution's inflation objective, of 2% per year. Parallel to this, a new decrease was recorded in inflation expectations for a year from now, which puts it even closer to the objective. The next monetary meeting will take place on March 7.
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