This report came out yesterday morning:
Peru's Central Bank May Keep Rate at 5.5% as Inflation Slows "June 12 (Bloomberg) -- Peru's central bank will probably keep its benchmark lending rate unchanged at the highest since 2001 after inflation slowed for a second month. Thirteen of 15 economists surveyed by Bloomberg expect the bank to leave the reference rate at 5.50 percent at its meeting today after an unexpected increase in April etc etc yada yada.................."
.....and this one came out yesterday evening
Peru Bank Unexpectedly Raises Rate to 5.75 Percent (Update1)
June 12 (Bloomberg) -- Peru's central bank unexpectedly raised its benchmark lending rate to 5.75 percent in a bid to control inflation etc etc yada yada............."
THESE PEOPLE ARE IDIOTS! Or maybe the bigger idiots are the banks and financial houses that actually pay them money for this crap, but they still have the analytical capacities of fruit flies. Next time you pay that extra charge on a bank transfer, remember where your hard-earned moolah is headed, yeah?
Whatever, but there's no doubt the central bank is a helluva lot more worried about inflation than the official noises that come from Garcia&Co and swallowed whole by the sheep who listen to them. This isn't much of a surprise, either (unless you're one of those "13 of the 15 professional dumbasses surveyed by Bloomberg" that is), as the weakening Nuevo Sol (now at 2.92, up from 2.65 in quicktime), will put pricing pressure on the fast rising quantity of imported goods aimed at Peru these days. Here's a chart showing how Peru's imports have been growing....
...and that's a serious, serious 54% increase in imports YoY. And despite the metals boom, Peru's trade balance is getting smacked around because of this....
...and there's not much in the way of surplus left to play with, Alan.
So it looks like there's an effort from the BCRP to slow the economy down, here. How long before our friends the freeloading, finger-in-the-air idiot analysts work this one out? That remains to be seen, but consider yourself ahead of the curve now, dear reader.