2026.07.0923:10:24UTC+00Peru Holds Rates Steady for 10th Straight Meeting

Peru’s Central Reserve Bank left its benchmark interest rate unchanged at 4.25% in July 2026, as widely anticipated, extending its pause for a tenth consecutive meeting. Annual headline inflation inched up to 4.0% in June from 3.9% in May, while core inflation rose to 4.5% from 4.4%, keeping both measures above the 1–3% target range. However, on a monthly basis, headline and core inflation were in line with the target band, with June’s uptick largely reflecting higher fish prices.

At the same time, 12‑month inflation expectations eased to 2.8% from 2.9%, remaining within the central bank’s target range. The bank projects that both headline and core inflation will gradually converge toward 2% as temporary supply shocks dissipate, but cautioned that a more intense El Niño episode and renewed tensions in the Middle East could keep inflation pressures elevated.

Policymakers also highlighted that economic activity remains solid, supported by further improvements in business confidence. They noted that global risks have moderated somewhat on the back of lower oil prices, even as geopolitical uncertainty continues to pose a risk to the outlook.