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BBVA Research Sees Peru's Central Bank on Hold in Next Months After Last Week's Unchanged Decision

BY MT Newswires | ECONOMIC | 01/12/26 09:49 AM EST

09:49 AM EST, 01/12/2026 (MT Newswires) -- Peru's central bank (BCRP) last week kept its policy rate at 4.25% for the fourth straight month, as the nation's price outlook remains benign, with inflation expectations (2.1%) well-anchored within the target range, noted BBVA Research.

It also noted domestic demand remains solid and will be temporarily bolstered by pension fund withdrawals early in the year, while upcoming elections and the normalization of inflation towards the center of the target rate limit the room for additional rate cuts.

So, BBVA expects BCRP's policy rate to remain at the current level in the coming months.

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