Looking Good For The Centre-Right

BMI View: Consistent support for centre-right candidates Luis Castañeda Lossio and Keiko Sofía Fujimori, coupled with waning backing for ultra-nationalist Ollanta Humala supports our view that Peru's 2011 presidential and parliamentary elections will be fought in the political centre. While this is likely to presage a continuation of Peru's business-friendly policy mix, we caution that a further uptick in political tensions could be on the cards as the election approaches.

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