06:23 AM EDT, 09/13/2024 (MT Newswires) -- The Board of Peru's central bank (BCRP) Thursday decided to cut the policy rate by 25 basis points to 5.25%, noted BBVA Research.

BVRP expects inflation to remain close to the center of the target range (2%, more or less 1%) in the following months and core inflation to follow a downward trend.

BBVA Research foresees two additional 25 basis point cuts to the reference rate during the remainder of the year. Considering that the central bank has explicitly stated it will return to a data-dependent mode, BBVA Research conditions its expectation of rate cuts on the absence of pressures in the foreign exchange market.