Peru bank leaves key rate at 4.75 percent

05 Aug, 2007

Peru's central bank on Thursday kept its benchmark interest rate unchanged at 4.75 percent, after raising it in July in a surprise move to tame inflation. Eleven economists polled by Reuters had unanimously forecast the rate would be held steady.
Consumer prices in the Lima metropolitan area, which are used as Peru's official inflation data, rose 2.21 percent in the 12 months ending in July, and 2.25 percent in the first seven months of the year. The central bank's 2007 inflation target is 1.0 percent to 3.0 percent. Before the rate hike in July, the bank had kept rates unchanged since May 2006.

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