Central Banking Bank (BCR) he agreed to keep the interest rate referenced at 2.75% , taking into account that economic activity indicators show temporary signs of dynamics in the third quarter and economic activity remains below its potential.
Similarly, it has a higher risk of global economic activity and more financial volatility, which is related to recent commercial tensions and uncertainty in international financial markets.
Another factor is, in October, that the interbank inflation rate and inflation trend indicators are within the target range.
Meanwhile, the 12 month inflation expectation remained at 2.4% in October.
It is projected that the interannual inflation rate will remain within the target range and about 2%. The Board of Directors believes that it is appropriate to maintain the extent of financial policy as long as the expectations of inflation continue to be adapted in an environment where the level of economic activity is lower than its potential.
Recent indicators of inflation and activity show the following information:
- October inflation was 0.08%, with an interactive rate of 1.3% in September to 1.8% in October 2018. The rate of inflation without food and energy was 0.06%, with the interactive rate remaining 2.1 %.
- Most business expectations indicators stay in the optimistic department in October. Similarly, there is a recovery of economic activity indicators in October.
At the same session of the Board of Directors, it was also agreed to maintain interest rates of active and passive operations in a national currency of the BCRP with the financial system made out of auction.
- i. Overnight deposits: 1.50% per annum.
- ii. Direct reporting operations of securities and money; and financial regulation credits: i) 3.30% per annum for the first 10 operations in the last 12 months a financial institution performs; and ii) the interest rate determined by the Foreign and Foreign Exchange Operations Committee for the operations as well as the 10 operations during the last 12 months.
- iii. Buying a temporary dollar (exchange): a commission equivalent to a minimum annual cost of cash of 3.30%.
The next session of the Board will be where the Financial Program will be evaluated on December 13, 2018.