07:14 AM EDT, 08/18/2025 (MT Newswires) -- BBVA Research estimates that Peru's central bank (BCRP) will maintain the monetary policy rate at 4.50% in the coming months.

This neutral monetary position is consistent with an outlook of no inflationary pressures and economic activity advancing at a pace close to its potential, noted BBVA Research.

However, the bias in this forecast is downward due to factors such as the decrease in inflation expectations and possible rate cuts by the United States Federal Reserve.

At last week's meeting, BCRP's Board of Directors held its benchmark interest rate at 4.50%.

The monetary authority expects total inflation to remain in the coming months near the lower end of the target range -- 2%, more or less 1% -- and then settle around 2%.

Core inflation would remain around the center of the target range over the projection horizon.

12-month inflation expectations decreased from 2.3% in June to 2.2% in July, within the inflation target range, BBVA Research pointed out.