# Peru: inflation risks mean interest rates cuts are unlikely | Capital Economics

> Capital Economics expects inflation risks in Peru to rule out interest rate cuts. Upward price pressure would keep the central bank's policy tight.

- Date: 2017-04-07 · published 2017-04-07T12:00:00.000Z
- Category: macro · region Peru · magnitude low
- Page: https://feedsoft.ai/events/71777-peru-inflation-risks-mean-interest-rates-cuts-are-unlikely-capital-economics
- Commodities: [Peruvian Sol (PEN per USD)](https://feedsoft.ai/c/USDPEN.md)

## Why it matters

Tighter Peruvian monetary policy supports the sol and raises local borrowing costs for feed importers and livestock producers, but the direct effect on feed commodity prices is small.

## Sources

- capitaleconomics.com: https://www.capitaleconomics.com/clients/publications/latin-america-economics/latin-america-update/peru-inflation-risks-mean-interest-rates-cuts-are-unlikely

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