Central Reserve Bank of Peru keeps policy rate unchanged at 4.25%

The Central Reserve Bank of Peru held its reference interest rate at 4.25%, citing inflation and inflation expectations within its target range and activity running close to potential. In December, monthly inflation was 0.24% and inflation excluding food and energy was 0.45%. Twelve‑month headline inflation rose to 1.5% from 1.4% in November, while core inflation remained at 1.8%, close to the midpoint of the target range; 12‑month inflation expectations eased to 2.1% from 2.2%. The central bank expects year‑on‑year inflation to move toward the midpoint of the target in coming months and core inflation to stay around 2% over the projection horizon, while noting continued positive domestic indicators and a global outlook of moderate growth, slightly below the 2025 estimate. It also set its standing facility rates in soles, including an overnight deposit rate of 2.25% and a 4.75% rate for the first 10 direct repo operations and Monetary Regulation Credits over the last three months, with additional operations priced by the Monetary and Foreign Exchange Operations Committee. The next Board meeting to assess the monetary programme is scheduled for 12 February 2026, and the central bank said it will remain attentive to incoming data on inflation, core inflation, inflation expectations and economic activity when considering any future policy adjustment.