Peru Cuts Rate to 4.5% With Slow Inflation, Tariff Risks (1)

Peru resumed monetary easing with inflation firmly under control and US tariffs posing mounting risks to its economy.

The central bank cut its key rate to 4.5% from 4.75% on Thursday, as expected by five of 13 economists surveyed by Bloomberg. The other eight expected policymakers to hold rates steady for a fourth consecutive month.

The central bank said in a statement that it expects both headline and core inflation to hover around 2% in coming months, which is the coveted midpoint of the central bank’s target band.

It said its benchmark interest rate is now approaching neutral levels ...