Peru’s central bank ruled out aggressive interest rate hikes to fight the rising inflation in the country, even as the Fed steps up the pace of monetary tightening. Last week, the central bank increased its forecast for Peru’s 2022 inflation to 6.4% from 3.6%, and now sees prices rising 2.5% next year, from 2.1%. The bank has been raising the key rate by half a percentage point for the past ten months, after an initial increase of 25bps last August.