Macroeconomic Forecast PeruMay 2010 | Macroeconomic Forecasts
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BMI View: Peruvian monetary policy makers surprised market observers on May 6 with a decision to hike benchmark lending rates by 25 basis points (bps) to 1.50%. We believe that the move highlights a desire to gradually normalise monetary conditions and pre-empt higher price pressures amid rising output levels in the economy. Indeed, given Peru's robust economic outlook for 2010 (we currently forecast 5.0% real GDP growth in 2010), we have recently raised our end-2010 interest rate projection to 3.50% from 2.00% previously.