FX.co ★ Peru Keeps Rates Steady for 12th Straight Meeting

Peru’s Central Reserve Bank left its benchmark interest rate unchanged at 4.25% in September 2026, extending its pause for a 12th consecutive meeting. Annual inflation rose to 4.4% in August from 4.1% in July, mainly due to a base effect stemming from negative monthly inflation a year earlier. In contrast, core inflation excluding food and energy edged down to 4.5% from 4.6%. When transportation is also excluded, underlying inflation stood at 1.8% and has remained below 2% since April 2025. Twelve-month inflation expectations increased slightly to 3.1% from 3.0%, hovering just above the upper bound of the target range. The central bank anticipates that inflation will converge toward 2% as supply shocks dissipate, although El Niño and geopolitical tensions in the Middle East could keep inflationary pressures elevated. Economic activity remained robust in August: all current-conditions indicators improved, and expectations stayed optimistic, albeit somewhat more moderate. At the same time, global risks remain high, as evidenced by increased volatility in financial markets and oil prices.