| Peru’s Central Bank Keeps Benchmark Rate at Record Low 1.25% |
| News - Americas |
| Written by Alex Emery, Bloomberg |
| Friday, 11 September 2009 15:27 |
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Sept. 10 (Bloomberg) -- Peru’s central bank kept its benchmark lending rate at a record low as policy makers wait for signs of a sustained economic recovery following seven consecutive cuts in borrowing costs earlier this year.
The seven-member board, led by bank President Julio Velarde, kept its reference rate at 1.25 percent today, matching the expectation of 19 of 20 economists surveyed by Bloomberg. One analyst had expected a quarter-percentage point cut. Peru’s economy is showing signs of recovery after posting near-zero growth in the first half of the year on slumping export demand and lower domestic spending. The central bank paused to gauge the economic effect of the record-low interest rate, said Daniel Volberg, an economist at Morgan Stanley. |