# Peru cuts rate 2nd time this year, no new cuts implied  - Central Bank News

> Peru's central bank cut its benchmark rate by 25 basis points to 2.25%, its second cut this year after an August move. The bank said the decision did not necessarily signal further cuts and that it would watch inflation closely. Inflation was 1.88% in October, and the bank expects it to stay near its 2% target.

- Date: 2019-11-08 · published 2019-11-08T12:00:00.000Z
- Category: macro · region Peru · magnitude low
- Page: https://feedsoft.ai/events/56374-peru-cuts-rate-2nd-time-this-year-no-new-cuts-implied-central-bank-news
- Commodities: [Peruvian Sol (PEN per USD)](https://feedsoft.ai/c/USDPEN.md)

## Why it matters

Lower rates tend to weaken the sol against the dollar, which raises the cost of dollar-linked imports for Peruvian feed and livestock buyers. The bank's signal of no further cuts limits the chance of a larger currency move.

## Read by commodity

- USDPEN: bullish ▲

## Sources

- centralbanknews.info: http://www.centralbanknews.info/2019/11/peru-cuts-rate-2nd-time-this-year-no.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.