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Peru central bank holds rate, flags coronavirus uncertainty

Peru's central bank maintained its reference rate at 2.25% amid steady inflation and uncertainty regarding the economic impact of the novel coronavirus outbreak.

Banco Central de Reserva del Perú said headline and core inflation remained at annual rates of 1.9% and 2.3%, respectively, in January.

The central bank said the year-ahead expected inflation rate fell in January to 2.05% from 2.23%. The bank reiterated that annual inflation would be around 2% over its forecast horizon, with "moderate downside bias" due to lower-than-expected demand.

The bank said the risks posed by trade tensions to global growth have subsided, but it added that "the impact of the coronavirus is still uncertain."