06:54 AM EST, 01/10/2025 (MT Newswires) -- The Board of Peru's central bank (BCRP) decided to cut the policy rate by 25 basis points to 4.75% late Thursday, noted BBVA Research.

BCRP expects headline and core inflation to remain close to the center of the target range -- 2%, more or less 1% -- in the following months.

One year ahead inflation expectations remain slightly below 2.50%, within the inflation target range.

BBVA Research anticipates a final 25bps cut to the policy rate in the coming months, before the end of Q2, bringing it to what it estimates as the neutral level, or 4.50% in nominal terms).

BBVA Research also maintains its view that the timing of the cut will depend largely on developments in financial markets.