07:05 AM EDT, 09/10/2024 (MT Newswires) -- Peru's central bank (BCRP) will conduct its monthly Monetary Policy Committee meeting on Thursday and Deutsche Bank expects the policy rate to be reduced by 25 bps to 5.25%.

The bank thinks that the more favorable inflation dynamics -- particularly as they pertain to the core gauge and expectations--, the

appreciable weakness of activity recorded in the most recent print and the expectation that the United States Federal Reserve will start easing policy later in the month support the continuation of policy easing in Peru.

Beyond September, Deutsche Bank sees BCRP advancing its normalization process in lockstep with the Fed, delivering 25 bps cuts in November and December to leave the policy rate at 4.75% by year-end.