Economy & Business - January 2006

The central bank raised interest rates on 5 January to 4.25% in an attempt to bolster the Nuevo Sol. The currency has come under pressure following the rise of Ollanta Humala, a leftwing, anti-Chilean and anti-US nationalist, in the opinion polls for the 9 April presidential elections. The most recent poll, published on 16 January, had him at 28% comfortably ahead of the centre-right candidate Lourdes Flores who was on 22%. The bank raised rates for the first time since October 2004 in December 2005 to 4%.