Economy & Business - January 2023

PERU | Interest rate hike. On 13 January, Peru’s central bank (BCRP) raised its benchmark interest rate by 25 basis points to 7.75% in response to high inflation. In a statement explaining its decision, the BCRP noted that annual inflation increased slightly between November and December, rising from 8.45% to 8.46%. However, the BCRP forecast “a downwards trend in annual inflation from March, with a return to the target range [1%-3%] in the fourth quarter of this year,” and predicted that Peru would close 2023 with inflation of 4.30% – down from 4.68% in its November forecast.