LIMA, Dec 10 (Reuters) - Peru's central bank kept its benchmark interest rate unchanged at a record low 1.25 percent on Thursday, holding borrowing costs steady for the fourth month after seven straight cuts.
Taking advantage of low inflation, the bank trimmed interest rates by a total of 5.25 percentage points this year in a bid to eke out growth during a global downturn.
In a statement on its monthly monetary meeting, the bank said it expected inflationary pressures to remain low in the coming months and it would not likely change its benchmark rate soon.
Inflation is forecast to close the year at close to zero.
The bank's annual inflation target is 2 percent, plus or minus one percentage point.
'Save for important changes in inflation forecasts and their determinants, new adjustments in the interest rate are not foreseen,' the bank said.
Peru's economy, which surged nearly 10 percent last year, is expected to grow about 1 percent this year.
The finance ministry expects the economy to expand about 5 percent next year, and says inflation should return to more normal levels as demand picks up.
(Reporting by Patricia Velez; Writing by Dana Ford; Editing by Andrew Hay) Keywords: PERU ECONOMY/RATES (dana.ford@thomsonreuters.com; +511 221-2130; Reuters Messaging: dana.ford.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Taking advantage of low inflation, the bank trimmed interest rates by a total of 5.25 percentage points this year in a bid to eke out growth during a global downturn.
In a statement on its monthly monetary meeting, the bank said it expected inflationary pressures to remain low in the coming months and it would not likely change its benchmark rate soon.
Inflation is forecast to close the year at close to zero.
The bank's annual inflation target is 2 percent, plus or minus one percentage point.
'Save for important changes in inflation forecasts and their determinants, new adjustments in the interest rate are not foreseen,' the bank said.
Peru's economy, which surged nearly 10 percent last year, is expected to grow about 1 percent this year.
The finance ministry expects the economy to expand about 5 percent next year, and says inflation should return to more normal levels as demand picks up.
(Reporting by Patricia Velez; Writing by Dana Ford; Editing by Andrew Hay) Keywords: PERU ECONOMY/RATES (dana.ford@thomsonreuters.com; +511 221-2130; Reuters Messaging: dana.ford.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.