Deutsche Bank Sees Peru's Central Bank on Hold This Year

11:20 AM EST, 02/23/2026 (MT Newswires) -- Peru's central bank (BCRP) left its policy rate unchanged at 4.25% last week, as expected, said Deutsche Bank.

BCRP kept the policy statement largely unchanged, noting that inflation remains around the target and the economy is performing close to its potential, noted the bank.

The statement, however, included that 2026 global growth should be stronger than expected and the terms-of-trade are "exceptionally" favorable for Peru.

The statement remained bereft of any hint of forthcoming moves, which Deutsche Bank interprets as a sign of the BCRP's comfort with the current monetary stance.

The favorable inflation outlook, a continued dynamism of the economy, risk-management considerations ahead of the upcoming elections, the non-committal forward guidance offered by the BCRP, and the precedent of prolonged holds at the current level underpin the bank's view the current monetary stance will be maintained for an extended period.

Deutsche Bank pencils in the policy rate closing 2026 at 4.25%.

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