Market Brief
Daily market recaps with key events, stock movements, and global influences
The Central Reserve Bank of Peru kept its reference rate at 4.50% on Thursday, matching economists’ forecasts and pausing after the surprise cut it delivered in May. Policy makers opted for caution while domestic inflation remains subdued, with market participants saying the pause gives the board flexibility as it evaluates external conditions. Analysts pointed to the 145% tariff the United States imposed on Chinese goods in April as a major source of uncertainty, warning that higher import costs could push prices up across Peru and other trade-dependent economies in the coming months. Similar caution is visible at the U.S. Federal Reserve, which is expected to leave borrowing costs unchanged as officials weigh the same tariff shock against softer labour-market data and muted inflation readings. Economists believe the Peruvian central bank could resume rate cuts later this year if inflation stays contained and global headwinds ease, but further trade tensions would likely delay any renewed monetary easing.
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