Peru Central Bank Increases Reserve Requirements
LIMA (Dow Jones)–The Central Reserve Bank of Peru said Sunday that it will increase the average reserve requirement rate for both national and foreign currencies, aiming to cool off strong growth in bank loans.
The central bank said that it had approved an increase of 25 basis points in the average rate on reserve requirements from Feb. 1.
The central bank added that Peruvian bank long-term borrowing from foreign banks will continue to be exempt from reserves requirements when they are replaced by bonds of longer maturities.
“With these measures the central bank is complementing a gradual withdrawal of monetary stimulus in a context of dynamic economic activity,” the bank said.
The central bank has taken a number of measures recently to ease potential inflationary pressures, including increasing its policy rate by 25 basis points this year, to 3.25%.
The economy is expected to expand by more than 7% this year.