Peru’s Central Reserve Bank kept its benchmark interest rate at 4.50% in August, signaling that future moves will depend on new inflation data and its key drivers. July’s monthly inflation rose 0.23%, while core inflation increased 0.18%, leaving both annual rates steady at 1.7%. Inflation expectations for the next 12 months eased to 2.2%, remaining within the bank’s target range. The BCRP expects inflation to stay near the lower bound of its target in the coming months before stabilizing around the midpoint. Most economic activity and sentiment indicators improved in July, with nearly all in optimistic territory, though global growth prospects have weakened amid trade restrictions and market volatility. The bank reaffirmed its readiness to act if needed, maintaining related policy rates such as 2.50% for overnight deposits and 5.00% for certain monetary regulation credit operations.