Peru's central bank kept its benchmark interest rate unchanged at 4.25 percent on Thursday, as a continuous 26 months, inflation remains moderate and close to its potential economic expansion.
Reuters survey of all 15 economists had expected the monetary authorities will keep interest rates steady again.
The central bank said that it can relax reserve requirements for banks in order to stimulate the economy and weak global economic growth will continue to affect the Andean country's mineral exports.
"Current production activities and preliminary indicators show that Peru's economic growth close to its long-term sustainable levels, but with the external market indicators remain weak, affecting export prices and quantities," the central bank said in a statement.
The central bank and the government's strong economic growth forecast this year, about 6%, despite the disappointing mineral shipments falling metal prices slipped 4.8 percent in the first quarter to expand.
Peru's economic growth of 7.65%, compared with the same month last year in April before, the strongest monthly expansion in the past two years.
In June, consumer prices rose 0.26 percent, leaving 2.77 percent for the past 12 months inflation the central bank's 1-3 percent target range near the upper limit.
The central bank said inflation is expected to slow in the coming months to 2% of the food supply situation improved.
Peru's potential growth rate, the maximum rate the economy can expand without provoking excessive inflation, which is usually seen around 6% or 6.5%.
Economic growth of 6.3 percent last year, one of the fastest pace in Latin America.
Peru is the world's leading gold, silver, copper, zinc and tin producing countries. Mining has always powered the economy, but in recent years, growth has been driven by strong domestic demand.
 



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