Peru’s central bank may slow the pace of interest rate increases at its monthly meeting today as moderating inflation allays concern that South America’s sixth- biggest economy is overheating.
The seven-member board will probably raise the bank’s reference rate by a quarter-point to 3.25 percent from 3 percent, according to 12 of 16 economists surveyed by Bloomberg. Three economists expect a third consecutive half-point increase, while one analyst forecasts a pause. The board will announce its decision after 6 p.m. New York time continues here
After the event:
The Peruvian central bank’s surprise decision to keep the benchmark lending rate unchanged signals policy makers are seeking to stem the 3.6 percent rally in the sol this year, according to Banco Santander SA.
The seven-member board, led by bank President Julio Velarde, kept the bank’s reference rate at 3 percent, surprising all except one of 16 economists surveyed by Bloomberg. Most analysts had predicted the central bank would raise rates for a sixth consecutive meeting.
“They’ve held the rate to control the inflow of dollars to the currency market,” said Gonzalo Navarro, head trader at Santander in Lima. “With inflation under control, the central bank can start to worry about the currency.”continues here
Yep, only one out of 16 of these overpaid dumbasses could name that tune, but they all have oh-so-intelligent comments to make on what the CenBank does once it's all over. About par for the course.