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Peru holds key rate at 2.25% on downward inflation bias

Banco Central de Reserva del Perú maintained its benchmark monetary policy rate at 2.25% on the heels of lower risks from global trade tensions and a downtrend in inflation.

The central bank predicted yearly inflation to be at around 2.0% over the forecast horizon, noting its inflation projection has a "moderate downside bias" due to the possibility of lower-than-expected growth in demand.

According to Bloomberg News, the rate is at its lowest level since 2010. The central bank last cut the key rate to 2.25% from 2.50% in November.