The Board of the Central Reserve Bank of Peru (BCRP) left its policy reference rate unchanged at 4.25 % in March 2026, citing year-on-year headline inflation’s rise to 2.2 % in February (from 1.7 % in January) and core inflation’s move to 2.2 %, both still around the 2 % midpoint of the 1-3 % target band, alongside economic activity that “remains around its potential” despite softer confidence indicators. After trimming the rate by a cumulative 50 bp between May and September 2025, the BCRP has held it steady. Operational rates were maintained at 2.25 % for overnight deposits and 4.75 % for the first ten repo and rediscount operations over the past three months, with higher rates possible for additional transactions. One-year-ahead inflation expectations inched up to 2.1 %, and the bank foresees headline inflation hovering near 2 % over the forecast horizon, though temporarily breaching the upper end of the target in coming months owing to climate-related supply shocks, higher international energy prices and gas supply interruptions. Leading indicators up to February continued to show solid performance, but most current-condition and expectation measures slipped while staying in optimistic territory. Heightened global risk from the Middle East conflict is fuelling financial-market volatility and higher oil prices, though world growth prospects and Peru’s terms of trade remain favourable. The Board reiterated its readiness to adjust policy if needed to keep inflation within ta
Central Bank of Peru 2026-03-12
BCRP keeps policy rate unchanged at 4.25% in March 2026
Central Reserve Bank of Peru kept its policy rate at 4.25 % for March 2026, extending a pause since September 2025 as headline and core inflation both reached 2.2 %—still near the 2 % midpoint of the 1–3 % target band—while activity held around potential. The bank retained supporting operational rates, warned of a temporary inflation overshoot from supply shocks, and will review policy on 9 April.