Peru's Economic Growth Likely to Have Lost Steam in October, Says Central Bank

Peru's economy is likely to have lost steam in October, the central bank said on Friday, estimating it would have grown between 4% and 6% in the period, the lowest rate since March, when the economy started rebounding from the pandemic, Reuters reported. Economic expectations from the business sector have also deteriorated, the bank's head of economic studies, Adrian Armas, said in a conference call. Peru on Thursday lifted its benchmark interest rate for the fifth month in a row, to 2.5% from 2%, amid persistent inflation. Armas added that in 2022 Peru's economy is likely to face "highly positive" external factors, but that benefiting from them will "depend on whether we can manage a context of social and political stability." Socialist President Pedro Castillo has spooked markets since taking over in July, sending the country's sol currency to record lows. He recently fended off an impeachment attempt. The bank on Dec. 17 will publish a quarterly report with macroeconomic expectations. In the last report, the bank estimated the economy would grow 11.9% in the year, but central bank chief Julio Velarde said recently that growth could reach 13.2%. Read more.