Daily Market Update

Category: Peru

September 2025
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Peru’s central bank raised its 2022 inflation estimate to 7.8% from 6.4% in its previous forecast and cut its 2022 GDP forecast to 3% from 3.1%. Separately, Thousands of Haiti faced water shortages after days of protests virtually halted distribution, as an approaching storm caused more worry in the reeling country. Forecasters said the storm’s heaviest rains are more likely to hit the Dominican Republic on the east of Hispaniola Island, with the government issuing a hurricane warning for the eastern region.

September 19, 2022

Peru’s economy expanded 1.41% YoY in July from 3.42% in June, mainly driven by the slowdown in the country’s key mining sector, which accounts for 60% of Peru’s total exports. Last week, the nation’s economy minister launched a series of measures, including subsidies, tax exemptions, increased public spending, and cash transfers to reactivate production in the country.

September 16, 2022

Peru’s president Pedro Castillo appointed Cesar Landa as the foreign minister, who had already held the same position a month ago, following Castillo’s public disagreements over foreign policies with former foreign minister Miguel Rodriguez who resigned last week. Separately, Peru’s central bank could reduce its benchmark interest rate by around 200 bps in 2023 if inflation continues to decline, according to Credicorp Capital. The central bank raised its benchmark interest rate to a record high of 6.75% last Thursday but reduced the rate of increase to 25 bps from 50 bps for the first time since August 2021.

September 14, 2022

Peru’s central bank raised its benchmark interest rate by a smaller-than-expected 25 bps to 6.75% after inflation eased for two consecutive months. The country’s annual inflation rate decreased to 8.4% in August from 8.74% in July. The bank forecasts further deceleration in inflation, mainly due to moderating international food and energy prices.

September 9, 2022

Fitch revised Peru’s GDP growth forecast to 2.3% for 2022. The agency mentioned that the country’s current account deficit widened to 5.5% of GDP in the first half of this year and forecast at 4.7% of GDP for the full year, amid mining profit repatriation and high fuel import costs. Fitch warned that the decreasing copper price is exposing risks to Peru’s current account and economic growth trajectory, as the country’s copper production declined in the first half of 2022.

September 1, 2022

Peru’s president Pedro Castillo appointed three new cabinet members amid an increasingly turbulent year of a political crisis that is seen on average a new minister being named every six days.

August 25, 2022

Peru’s institutional crisis deepened as congress summoned PM Anibal Torres to testify on a ‘violent’ speech in which he asked people to defend the government on the streets.

August 18, 2022

Peru’s peasant militias threatened to organize a mass protest of 2mln citizens if congress does not respond to its demands, including a new constitution and redistribution of wealth. Argentina, Bolivia, Ecuador, and Mexico issued a call for peace amid the deepening political crisis in the country.

August 16, 2022

Peru’s central bank raised its benchmark interest rate by 50bps to 6.5%, the highest level since 2009 as policymakers work to cool above-target inflation amid renewed political turmoil. The country’s annual inflation rate rose to 8.74% in July from 8.1% in June, the highest reading since July 1997 amid elevated levels of food and energy prices. The bank reiterated its forecast that inflation will return within its target band of 1% to 3% by the second half of 2023.

August 12, 2022

Peruvian lawmakers are closer to the 87 votes needed to oust president Pedro Castilo amid a judicial investigation into the head of state. Congressman Edward Malaga, an independent centrist, said the motion has the backing of 80 lawmakers so far, and more are expected to join.

August 5, 2022

Peru’s PM Anibal Torres resigned on Wednesday, triggering another cabinet reshuffle. His departure comes as polls show the government’s popularity is failing to new lows amid the fastest inflation since the 1990s, and as prosecutors open investigations into president Castillo, and former close aides for alleged corruption.

August 4, 2022

Following Peru’s government’s decision to exclude fuel from the selective consumption tax on June 30, the nation’s truckers are holding a nationwide strike to protest high fuel prices.

July 19, 2022

Peru’s central bank raised its benchmark interest rate by 50bps to 6%, the highest since 2009. The country’s annual inflation rate inched up to 8.81% in May from 8.0% in April, the highest reading since July 1997.

July 8, 2022

Peru’s annual inflation rate accelerated to a 25-year high of 8.81% in June from 8.09% in May due to soaring prices of food and energy. The last time the country had annual inflation at this level was in 1997 when the South American country was in the midst of a prolonged conflict with guerilla groups.

July 4, 2022

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.

June 20, 2022
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