Peru's central bank on Dec. 13 decided to hold its monetary policy interest rate steady at 2.75% after annual inflation in the country remained within the bank's target range of 1% to 3% in November.

"Economic activity indicators show higher dynamism in the fourth quarter, even though the output level remains below its potential," Banco Central de Reserva del Perú said in a statement.

As annual inflation is projected to remain around 2.0%, the central bank's board considered it appropriate to "maintain an expansionary policy stance while inflation expectations are anchored in a context in which the level of economic activity is below its potential."

Annual inflation rose to 2.2% in November from 1.8% in the previous month, the central bank said, adding that most indicators of business expectations have improved and remain on the optimistic side.

The bank's first inflation report for next year will be published on March 29, 2019.