Further tightening expected in Peru – BBH

Analysts at BBH see the Peruvian central bank hiking rates by 25 bp at its meeting this week.

Key Quotes

“Peru’s central bank meets Thursday and is expected to hike rates 25 bp to 4.5%”.

“However, with inflation easing back towards the 1-3% target, the central bank may pause its tightening cycle and so we think there is a small chance of a dovish surprise”.

“It has hiked 25 bp every meeting since December”.