The Board of Directors of the Central Reserve Bank of Peru on 14 May 2026 kept the policy reference rate unchanged at 4.25 percent, citing still-elevated headline (4.0 percent) and core (4.4 percent) inflation in April driven mainly by higher transport fares and fuel costs, alongside solid but slightly softening business sentiment and expectations. This follows two 25 bp rate cuts in May and September 2025 that lowered the rate from 4.75 percent to its current level. The operating corridor was left intact, with overnight deposits at 2.25 percent and security/currency repo and rediscount operations at 4.75 percent for the first ten operations in the past three months, with higher rates possible thereafter. One-year-ahead inflation expectations ticked up to 2.8 percent in April but remain inside the target range; the central bank still expects headline and core inflation to return to the band and settle around 2 percent in 2027 as temporary supply shocks fade. Leading April indicators point to economic activity near potential despite some deterioration in expectations, while favourable terms of trade cushion the economy amid heightened global risk from Middle East tensions and elevated oil prices. The Board pledged to monitor core inflation, expectations, activity and the persistence of supply shocks and stands ready to adjust policy to secure inflation’s return to target.
Central Bank of Peru2026-05-14
Central Reserve Bank of Peru holds policy reference rate steady at 4.25 percent
Central Reserve Bank of Peru kept the reference rate at 4.25 % on 14 May amid April headline and core inflation above target, pausing after two 25 bp cuts in 2025. The Board expects inflation to ease towards 2 % by 2027 and signalled readiness to act if underlying pressures or expectations deviate.